Australian
Bayliss, who will leave his post at the end of that season, sees his long-time assistant as an ideal candidate as his successor.
After England delivered a historic first-ever 5-0 one-day international whitewash over his native Australia at Old Trafford on Sunday, Bayliss spoke too of the "unbelievable" talents of match-winner Jos Buttler.
England announced last week that Farbrace will take over Bayliss' duties for the one-off Twenty20 international which will conclude Australia's tour on Wednesday, and then three more matches to start India's trip - while the head coach watches domestic cricket elsewhere.
Asked if Farbrace could be his long-term successor, Bayliss said: "Definitely. If that's what he wants to do, then I'm all for it."
Bayliss explained his short break, and Farbrace's stint in charge, was agreed with England and Wales Cricket Board director Andrew Strauss six months ago.
"Straussy spoke to me...with that in mind, to give Farby some exposure with the top team.
"He's had success doing it before...this is an opportunity to get that experience.
"I was happy to give Farby the opportunity when he asked me if I'd have any problem with it."
Bayliss confirmed he is also still in favour of splitting coaching responsibilities between formats, to avoid "burn-out" in a crammed international schedule.
"There's burn-out with the coaches as well," he said.
"The coaches are a little bit older than the players, so maybe it doesn't take quite as much.
"We mightn't be running around out there - but sitting on the balcony you play every shot and bowl every ball. I think it will go that way."
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