He said while no official negotiations were taking place, FFA technical director Han Berger was a friend of Hiddink and it was likely they had spoken informally.
"He has a number of offers to consider in relation to the World Cup and has not made his mind up yet about anything."
FFA chief executive David Gallop said Osieck's replacement would have to have a strong focus on Australia's longer-term success while producing a competitive showing at next year's World Cup in Brazil.
"This is about the need to rejuvenate, regenerate our team," he said. "We've got a lot to look forward to in the next months and years.
"Brazil is important, as is the Asian Cup 2015 and ultimately we want to be at the next World Cup as well. This is a decision taken in the long term interests of the team."