Laxman had approached Hussey during the last IPL, barely a month before the Indian cricketer was inducted by the BCCI into its three-member advisory panel that was assigned with finding India's head coach in place of Duncan Fletcher, who departed following the 2015 World Cup.
"The former Sri Lanka captain Mahela Jayawardene rang me a while ago to ask if I would be interested in being an assistant coach of Sri Lanka with a view to taking over as head coach a few months further down the track," Hussey wrote in 'Winning Edge', his third book that was released recently.
Since Fletcher's exit, former India allrounder Ravi Shastri has played the caretaker's role in his position as team director.
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Hussey said while he told Laxman that he was willing to start only as an assistant coach, but the Indian cricketer felt he was highly capable of coaching an international team.
"VVS accepted that I was not interested because of family reasons. But he would not accept my feeling that I was not up to standard for a job like that. 'You have played the game very well for a long time, you know what needs to be done, you shouldn't doubt yourself'," Hussey wrote in his book.
"It's a very complex job that requires numerous skills that have little or nothing to do with cricket," he further revealed.
Hussey pointed out that Laxman had disagreed with him again, saying that "guys with our level of experience had more understanding of the ins and outs of the game than just about anyone".