The 49-year-old was linked with the post after Alen Stajcic was sacked for an "unsatisfactory" team environment.

Australian Montemurro, who signed a new long-term deal in October, is said to be very happy coaching the Gunners.

Football Federation Australia have said they want an interim coach to lead the team through this summer's World Cup.

Arsenal are currently second in the Women's Super League, one point behind Manchester City with a game in hand.

Australia were one of the six seeded nations for the draw for this summer's tournament in France and will face Italy, Brazil and Jamaica in Group C.