Potter is being lined up to replace Jon Dahl Tomasson after he was axed as Sweden coach this week.
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Potter, also formerly of Chelsea and Brighton, enjoyed success in Sweden with Ostersunds SK over seven years before returning to British football with Swansea City.
BBC Sport says he is now in talks with the FA about taking the national team job.
Tomasson was fired from his Sweden post after a 1-0 defeat at home to Kosovo in Monday's World Cup qualifier.
However, Sweden are still in the mix to qualify for next year's tournament despite being winless in three games.