Algerian FA president Kheireddine Zetchi has made Herve Renard the primary target to replace Rabah Madjer, with Rabah Saadane also potentially taken over as a temporary manager.
Renard currently manages the Moroccan national team, and he has helped them qualify for the 2018 World Cup in Russia.
Zetchi has reportedly already begun plans for life after Madjer, with the current Algeria manager expected to be gone after the Desert Foxes play Portugal.
Madjer refuses to resign, which means the FA would have to fork out the $480,000 payment package if he is to be sacked.
And whilst Algeria chase Renard, former manager Rabah Saadane could take charge of the North Africans in a temporary position until a permanent appointment is made.
The pressure is on Zetchi to deliver a huge managerial appointment, after failing miserably with Lucas Alcaraz and Rabah Madjer.
Algeria are currently on a three match losing run, and look set to make that four with a tricky trip to Portugal on Thursday evening.
Meanwhile, Renard has not lost a game in charge of Morocco in over one year showing the stark contrasts in management quality.
Renard worked as a coach for USM Alger nearly ten years ago, so has experience managing in Algeria. He brought Africa Cup of Nations success to Zambia and Ivory Coast.