Algeria hope to appoint a new national team manager in early August, according to the country's Football Federation (FAF) president, Kheireddine Zetchi.
Zetchi also revealed that former coach Vahid Halilhodzic, current Morocco boss Herve Renard and Iran's Portuguese manager Carlos Queiroz are not among those being considered to replace Rabah Madjer.
Former international Djamel Belmadi, 42, is widely expected to be appointed coach of the Desert Foxes.
Speaking to reporters on Friday, Zetchi said: "We are in discussions with two coaches and the name of the new coach will be known early next month.
"I am telling you and officially, [Vahid] Halilhodzic will not return, as well as Herve Renard.
"As for the Portuguese Carlos Queiroz, personally, I did not contact him and I don't know who had been in touch with him."
The FAF has conducted a wide search but Zetchi suggested they would be looking to replace Madjer, sacked in June after ten months in the role, with someone who was also acquainted with the language and the country's game.
He added: "It will not necessarily be a Frenchman, but what is certain is that he speaks the language to perfection and understands our football."
Despite making back-to-back World Cup appearances in 2010 and 2014, the North Africans failed to qualify for the 2018 tournament in Russia.
Four years ago, Algeria were one of just two African teams to reach the knock-out stage at the 2014 World Cup in Brazil, impressing in defeat against champions Germany in the Round of 16.
The 1990 African Champions' next competitive match is in September when they travel to play The Gambia in a 2019 Africa Cup of Nations qualifier.
Algeria began their campaign to reach Cameroon next year with a 1-0 win over Togo in June. Benin are the other team in the group.