McAllister lost out to Alex McLeish when Walter Smith quit last year but says he won't be in the race for the job this time.
Jock 'Snub' Paves The Way For Souness!
And former skipper McAllister, capped 57 times, believes Souness would be the ideal replacement for McLeish.
McAllister: "He just ticks all of the boxes for me.
"I think it's very important for a manager to be able to walk into the dressing room and have the presence and stature to gain instant player respect.
"Alex McLeish and Walter Smith had it and I feel it's important Scotland pick someone with the same qualities.
"Graeme certainly hasn't ruled himself out. He's definitely got the stature while he's also got the experience with regards to dealing with the media.
"But the big thing for me is respect. Who can say Graeme hasn't been there, seen it and done it? He has."
It will be interesting to see if Souness does get the job, and how the Daily Record react to it, because that newspaper reported Souness was the CAUSE of the 20 year slump in Scottish football.