The 43-year-old, who has also been linked with the vacant manager's post at his former club Crystal Palace, is understood to be meeting officials from the Football Association of Wales (FAW) in Cardiff for talks.
No announcement is expected on Friday however, but Coleman's current contract runs out after Wales' friendly against Finland on November 16.
The FAW cancelled a press conference due to be held on Friday morning to announce the squad for the Finland match.
Coleman took over as Wales manager in January 2012 following the death of Gary Speed but the team failed to qualify for the World Cup, finishing fifth in Group A.
It was one of the toughest groups however, and Coleman's side did end strongly with a 1-1 draw away against group winners Belgium and victory over Macedonia.
Coleman said after the final qualifier that he did not expect to be judged over the last two matches.
If Coleman does remain in the position he will have to find a new assistant after John Hartson announced this week he is standing down.
The squad itself was instead released by email by the FAW.
Regular captain Ashley Williams returned in a 23-man party for the game at the Cardiff City Stadium after missing the double-header against Macedonia and Belgium.
Star players Gareth Bale and Aaron Ramsey were also included in what was the first squad to be named since the international retirement of forward Craig Bellamy.
West Ham defender James Collins, who recently resolved his differences with Coleman, again featured while Ben Davies, Joe Allen and Joe Ledley returned from injury.
There was no place for Under-21 international Paul Dummett, who had been tipped for a call-up after his recent performances for Newcastle, but Liverpool youngster Harry Wilson was put on a seven-man standby lost.
Wilson, 16, became the country's youngest cap when he played against Belgium.