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According to The People, chairman Mohamed Al Fayed is determined to appoint a pedigree manager and is reportedly not favoring a move for former England manager Sven Goran-Eriksson who took charge of the Ivory Coast at World Cup 2010.
Fulham had been left red faced earlier this week after their failure to land Ajax coach Martin Jol, but Al Fayed will not be rushed into appointing a new dug-out chief.
Klinsmann, hailed as the man who masterminded and matured Germany's latest national team, has been out of work since leaving his post as Bayern Munich manager last summer.
The former German international is currently living in California and is not believed to have applied for any jobs. However, it is reported that the former Tottenham Hotspur striker would jump at the chance of a return to the Premier League.
Fulham are prepared to offer their new manager a £20 million transfer war-chest and a wage in excess of £2m a year.