The ARLC wants Walters to coach Australia through 2028 despite joining St Helens ahead of 2027, The Daily Telegraph reports.
Club coaches have been barred since the 1985 selection scandal involving Terry Fearnley.
Walters received a two-year extension offer this year before signing a three-year St Helens contract.
The ARLC sees no clash between next year's Pacific Championship and St Helens' Super League schedule.
Walters has yet to say whether he will accept.
In two years in charge, he has won all eight matches, including Sunday's 32-12 World Cup final win over New Zealand.
NRL Executive Chairman Peter V'landys praised Walters before the final.
"We're very, very happy with Kevvie. I think he's doing a fantastic job," he told the media.
V'landys also said:
"I have a lot of time for Kevin because people don't see the hard work he puts into it, the football intellect he has and the experience he has.