Arlidge stepped down from the role on Christmas Eve, citing a desire to spend more time with his family.
Basketball Otago general manager Markham Brown could not be reached for comment yesterday but the position has been advertised and applications close at 5pm on Friday. With several leading local coaches ruling themselves out, Dickel has emerged as the favourite.
The 37-year-old Nuggets captain is well-equipped for the role of player-coach.
He has played professionally in leagues around the world since leaving the University of Nevada, Las Vegas in 2000.
He has played at two Olympics and two world championships for the Tall Blacks and has made 110 appearances for the Nuggets since making his debut for the franchise as a 16-year-old in 1993.
He was head coach of the Albanian national team in 2010. Despite his qualifications, Dickel said he felt uncomfortable pursuing the job too aggressively.
Arlidge's decision to step down came as a shock to the basketball community. He had previously indicated he was happy to return for a fifth consecutive stint.
''No matter what I say or what I do, it is going to look like I pushed him out,'' Dickel said.
''I was hoping Alf would continue ... but for whatever reason he has decided not to.''
Dickel planned ''to sit at the back and wait and see what happens.
''I'm not going to do aggressively one thing or the other. As of right now I haven't put an application in.
''It is a tough one. A large part of the appeal for me to come back and play [for the Nuggets] was because Alf was involved. I felt we had been relatively successful with the combination the way it was.''
Last year the pair guided the Nuggets to their first appearance in the playoffs since 1997. Dickel said having to find a coach at this late stage was far from ideal but felt he was ready to step up if he was shoulder-tapped.
''I think I can do it. I don't see any reason why I couldn't. I always feel like I'm coaching anyhow when I'm playing, so it is not a big difference. I would obviously need a lot of help. That would have to be worked out.''
Nuggets assistant coaches Gavin Briggs and Dean Ruske have ruled out applying for the top job.
Briggs is a senior sergeant with the New Zealand Police, and Ruske is an ear, nose and throat surgeon, so their day jobs are just too demanding.
Briggs left a brief message and could not be reached for further comment. But Ruske was open to the idea of working with Dickel, although he said he was also keen to help Todd Marshall coach the women's team.
His daughters, Aleisha and Nicole Ruske, are likely to be part of the wider squad.
Marshall, who had two three-year stints as Nuggets coach from 1998-2000 and 2002-04, also said he would not apply for the role.
Former Otago Gold Rush coach Brent Matehaere was named junior Tall Ferns coach last year and is concentrating on that role.
