"Jurgen Klinsmann and Carlos Dunga are on the list of five coaches chosen by the FAF's candidature committee to succeed Abdelhak Benchikha at the head of the Algerian national side," said the source, quoted by the APS news agency.

The FAF committee reportedly whittled down the shortlist after receiving 43 applications for the job and the source said that further talks with the remaining candidates would be "initiated shortly".

Meanwhile, FAF president Mohamed Raouraoua firmly denied reports of an approach to the former France coach Raymond Domenech, in an interview in Tuesday's edition of the Algerian daily Liberte.

A statement from Domenech's advisors sent to AFP on Monday claimed he had been approached by the FAF but had not made an application for the post vacated by Benchika.

Aside from Dunga and Klinsmann, Bosnian Vahid Halilhodzic was also cited as one of the favourites to take over at the Algeria helm, according to APS.

Halilhodzic, a former coach of the Ivory Coast national team, is scheduled to meet Raouraoua in Paris on Friday.

The FAF launched a search for a new national coach on June 8, after Benchikha stepped down in the aftermath of the 4-0 defeat by regional rivals Morocco in an 2012 Africa Cup of Nations qualifier in Marrakech.

Algeria, eliminated in the group phase at last year's World Cup in South Africa, are currently bottom of qualifying Group D after four matches.