Venables is excited at the thought of working with England again

Venables, who led England to the semi-finals of Euro 96, has had talks about joining the set-up.

Allardyce, who was interviewed for the England job, said: "He has a wealth of experience and knowledge. If he has the appetite it's a magnificent signing.

"He knows the world of football inside out - it can only be a positive move."

Venables said he was interested in a role in the England set-up but denied suggestions he could one day return to the top job.

"I am not about to join England's staff as a way of getting Steve McClaren's job," said Venables in his column in the News of the World.

"I'm excited by the prospect of working with England again, although I must stress, the deal has to be finalised."

McClaren steps up from his role as an assistant coach under Sven-Goran Eriksson to take full charge from August.

And former Crystal Palace, Tottenham and Barcelona manager Venables added: "My potential role with Steve is very exciting. He is offering me the freedom to take on as much as I want.

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"I will obviously be involved around the matches and checking on players and he has already given me areas of the team he thinks need looking at."

Venables was appointed England manager in 1994 and led them to the last four of Euro 96 on home soil after beating Holland 4-1 in the group stages.

But after knocking Spain out on penalties to book their place in the semi-finals, they crashed out to Germany on spot-kicks and he left the post.

After that, he had a second spell with Palace as well as jobs with Leeds, Middlesbrough and the Australian national side.