The former Rangers and Liverpool boss had been one of the names touted as a possible replacement for the sacked Craig Levein, having previously been in the mix before George Burley was appointed.
But Souness emphatically stated the national job was not of interest to him. Instead, the Scotland legend has thrown his weight behind Joe Jordan, whom he had no doubt in stating was his favourite to replace Levein.
Speaking at Hampden today, he said: "No, the Scotland job is not for me. Obviously it is an honour to be linked with the vacancy, but I am older and wiser now and it is just not right for me, so it is definitely not something I would consider.
"For me, Joe Jordan is the man. He had a huge passion as a player for Scotland and I think that will be an important quality going forward for the country. He has been managing and coaching at the highest level in the English Premiership for the last 10 years and has a huge knowledge of the game.
"He has also coached in Europe when he was involved with Harry Redknap at Spurs and they made it through to the last eight of the Champions League. Joe is an intelligent football man and he would just bring so much to the table for Scotland."
Souness added: "I just think Joe is the right man at the right time for Scotland and he would have a galvanising effect and get everyone behind him. Everyone knows how much Scotland means to him."
Souness also admitted former Celtic manager Gordon Strachan was an outstanding candidate for the job. He said: "Gordon has obviously managed at the highest level as well and he is also an outstanding candidate but, for me, it would have to be Joe (Jordan)."
Reflecting on Levein's demise, Souness said the former Scotland boss had not enjoyed much luck and reckons that is a quality Jordan has been blessed with throughout his career.
Souness said: "Maybe Craig Levein did not enjoy much Lady Luck and I think luck is something that perhaps Joe would enjoy more of. I saw the Wales game and we had a perfectly good goal disallowed and just did not get any breaks and that maybe was what did for Craig.
"I would also have to say without meaning any disrespect that this group of players is not the most talented ever and it is not as if when you are a national manager that you can go out and buy or sign new players to bolster the side.
"Perhaps there have been things Craig would have done differently with hindsight, but management is a very tough game and even more so at international level. But the margins are very fine at the top level and you do need a bit of luck, and I feel for Craig."