Australia wants to appoint Martin O'Neill to replace Guus Hiddink as Socceroos coach, an English newspaper says.

The Daily Star said if appointed, the former Celtic manager would not have to leave his home in Buckinghamshire, England, as most of the Australian players are based in Europe.

O'Neill resigned from Celtic because of his wife's ill-health.

Suggestions he might take Hiddink's job follow a Football Federation Australia (FFA) statement earlier this week denying another report that it had already secured the services of Gerard Houllier.

FFA said former France and Liverpool coach Houllier was one of "a number of candidates" it was continuing talks with.

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