Wolves are seeking a new manager after Sunday's dismissal of Vitor Pereira.
A deal with former manager Gary O'Neil was close to being struck yesterday, before he pulled out of negotiations.
Allardyce's last spell in charge was with Leeds, where he led the club for four games but couldn't prevent them from being relegated from the Premier League.
He told talkSPORT: "I suppose the amount of times I've said I might retire, I can never say never the amount of times I've actually bounced back.
"So, I think that possibly Wolves was one of my childhood favourite clubs that I started watching I suppose, but you know, who knows?
"I think I've heard they're looking for a younger coach anyway, so not too sure my time will ever come round again.
"But I sit and wait, you never know, I'm not actively searching, if it happens, it happens, if it doesn't, it doesn't.
"If you're in sunny Dubai like me, you often think, why would you bother?"