The former Whites skipper is one of three British candidates being considered as successor to Brian McDermott, who was sacked last month.
It is understood that the new manager will work under a director of football. McAllister may not be averse to that situation since he has not worked as a coach since he acted as assistant to Gerard Houllier at Aston Villa between 2010 and 2011.
McAllister - who also played for Liverpool, Leicester City and Coventry City - was part of the Leeds side that won the First Division title in 1992 and served as manager for 11 months, before he was sacked in December 2008.
That followed an unimpressive start to the season which included a defeat by on-league Histon in the FA Cup.
Most recently employed as a television pundit in his homeland, the 49-year-old has also worked as manager of Coventry and also as the first-team coach at Middlesbrough, where he was part of the backroom staff under Gordon Strachan.