Advocaat, now with Russian clob Zenit St Petersburg, was reported to have held talks with the FFA.
The top coaching position has been vacant since fellow Dutchman Guus Hiddink, who took both the Netherlands and South Korea to World Cup semi-finals, left to coach Russia.
Graham Arnold, assistant to Hiddink, has filled in since Hiddink shifted focus to Russia at the end of the 2006 World Cup.
Advocaat, 59, is also a former coach of the Dutch national side. And, like Hiddink, he has coached South Korea.