Australia are in the process of recruiting a new coach in time for January's Asian Cup in Qatar after Dutchman Pim Verbeek stepped down following their elimination at the group stages of the World Cup in South Africa.
Media reports have linked Frenchman Paul Le Guen and much travelled Dutch coach Leo Beenhakker with the role but Herbert, the only unbeaten boss at the 32 team World Cup, said he thought there was enough Australian talent to select from.
"They (Football Federation Australia (FFA)) think the grass is greener on the other side, when it's not," Herbert told Australia's Daily Telegraph newspaper on Monday.
"Having a local coach didn't harm us. At some stage they (FFA) should be looking at someone out of the A-League to head up the national team," Herbert said.
Australia have a long history of appointing foreign coaches with Frank Farina, who left the role in 2005, one of only a handful of natives to take the job.
New Zealander Herbert, who led his country to their first World Cup finals in 28 years, has agreed terms on a new contract to take him through to the 2014 World Cup.
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