The Daily Telegraph has reported that Tim Cahill's former club Shanghai Shenhua, one of the the richest clubs in Asia, shortlisted Popovic as one of three candidates including Roberto Mancini and Laurent Blanc.
Former Socceroos defender Popovic emerged as the leading contender after Mancini ruled himself out in the early stages of negotiations.
Popovic’s success in Asia, having guided the Wanderers to the Asian Champions League tile in 2014, is said to have been a major factor behind Shenhua's interest.
Forty three-year-old Popovic is contracted to Western Sydney until the end of the 2018/19 season.
Wanderers CEO John Tsatsimas said while his is pleased Popovic chose to remain with at the Wanderers, the club would not stand in his way if a a good offer presented itself to him.
“Tony’s been hugely successful since he and we started and it’s only natural that success will attract other clubs,” he told The Daily Telegraph. “It’s not the first and it won’t be the last.
“Tony, myself and chairman Paul Lederer have a transparent relationship and if something came up he was interested in, of course we’d talk about it.
“But his only focus now is the team and building more success this season.”
It is now believed that the Chinese club are now targeting Celtic manager Brendan Rodgers as they continue their search after sacking Spanish coach Gregorio Manzano last week.
