That figure would net the Israeli $78,000 per match for the rest of the 2012-2013 campaign if the last-placed Sky Blues don't make the finals.
The 57-year-old, who took Partizan Belgrade to its fifth successive Serbian championship before quitting in May, is not coy about his financial expectations. Grant's agent, Pinhas Zhavi, last week outlined to the A-League club his terms.
'Sydney is on the radar for sure but only because no club in the Premier League has offered Avram a gig," a source close to Grant said.
'He was actually hoping to land the Chelsea job again before Rafa Benitez stepped in to replace Roberto Di Matteo.
'The interest in Sydney is being driven more by Avram's agent and that may be why he is asking for a larger sum and a short-term appointment only.
'Avram is not completely opposed to the idea but it does seem a little unlikely unless the money is too good to refuse.
'That was the figure he received for five months in charge at Partizan, so he won’t settle for less in Sydney."
Since leaving Partizan the ex-Israel, Chelsea, Portsmouth and West Ham United coach has worked as a consultant for cashed-up Russian Premier League club Anzhi Makhachkala FC, the home of star Cameroon striker Samuel Eto'o.
'There have been some initial discussions but Avram is quite tied to his home in Tel Aviv," the source continued. 'His son has just been conscripted to the Israeli army reserve and has been posted to the border of the Gaza Strip.
'With the unrest in Palestine, that's obviously of concern to him. His actress wife Tzofit is also a TV personality in Israel and would not want to relocate."
Grant led Chelsea, which he took over from sacked Jose Mourinho, to the 2008 UEFA Champions League final, which it lost on penalties to Manchester United.
He was subsequently dismissed by Roman Abramovich, with whom he remained on good terms, and became the club's director of football. Grant moved Portsmouth as the club slipped into administration, despite reaching the FA Cup final in 2010.
It is believed that Sydney FC’s marquee signing Alessandro Del Piero has had a large say in who is recruited to replace Englishman Ian Crook, who quit after six rounds, citing ill health as a result of job pressure.