The 2010 champions were eliminated from the World Cup by hosts Russian Federation in the round of 16 of the competition after losing 4-3 on penalties following a 1-1 draw.
Spain had a horrendous World Cup as far as their expectations go and it led to the inevitable resigning of stand in manager Fernando Hierro but now they have their targets set on their new man.
Martinez played down the links ahead of a quarter-final defeat of tournament favourites Brazil, with former Barcelona coach Luis Enrique also reported to be on the RFEF shortlist along with Michel and Quique Sanchez Flores.
The 48-year-old has been out of work since leaving Barcelona last summer.
In fact, Spain's only victory in Russian Federation came in the form of a 1-0 win over Iran who ensured that the European side had to fight hard for all three points.
Hierro had decided not to return to the post following the World Cup.
A former Spain global, Luis Enrique represented both Real Madrid and Barcelona during his playing career.
A formal unveiling is likely to take place next week.
Fernando Hierro was left at the helms of affair for the Mundial but refused to continue the job and Luis Enrique has now been named as the new manager of La Roja.
Earlier on Monday, Jose Francisco Molina, a former goalkeeper for Atletico Madrid and Deportivo La Coruna with nine caps for Spain, was appointed as the federation's sporting director.