McAllister is being tipped to replace another former Sky Blue Stephen Pressley.
The news surprised SFA CEO Gordon Smith who said: "I know that George was going to speak with him so I don't know what's happening in that respect. "I think he would be a very respected member of the staff but it is up to George Burley himself who he selects.
"George has total autonomy on who he brings in as a coach, and if he wants to bring in Gary, and Gary is happy to come in, then we will go forward on that basis."
