He was then appointed to the position of Australian assistant coach in 2000, becoming interim coach in July 2006.

On 6 September 2006 Australia was defeated 2–0 in an Asian Cup qualifying game against lowly-ranked Kuwait.
The FFA confirmed Arnold would remain Head Coach through to the end of 2007 Asian Cup campaign.

Australia started their Asian Cup campaign drawing with Oman in its opening Group stage game in Bangkok.
Media pressure focused on Arnold and on 13 July 2007 Australia were beaten 3–1 by the eventual winners Iraq in the 2007 Asian Cup.
Australia went on to be beaten by Japan in penalty shootout in the Quarter Finals.
Arnold then continued in the role as Manager of the Australian U-23 side, qualifying through to the 2008 Olympics.

He was also linked with the manager's position at Bolton Wanderers and Norwich City in England but lost out to Gary Megson and Glenn Roeder respectively.
With the appointment of Dutchman Pim Verbeek as the Australian manager, Arnold along with Henk Duut served as his assistant to the national side during the 2010 FIFA World Cup in South Africa.
He was then appointed to the position of Australian assistant coach in 2000, becoming interim coach in July 2006.
On 6 September 2006 Australia was defeated 2–0 in an Asian Cup qualifying game against lowly-ranked Kuwait. The FFA confirmed Arnold would remain Head Coach through to the end of 2007 Asian Cup campaign.
Australia started their Asian Cup campaign drawing with Oman in its opening Group stage game in Bangkok. Media pressure focused on Arnold and on 13 July 2007 Australia were beaten 3–1 by the eventual winners Iraq in the 2007 Asian Cup. Australia went on to be beaten by Japan in penalty shootout in the Quarter Finals. Arnold then continued in the role as Manager of the Australian U-23 side, qualifying through to the 2008 Olympics.
He was also linked with the manager's position at Bolton Wanderers and Norwich City in England but lost out to Gary Megson and Glenn Roeder respectively. With the appointment of Dutchman Pim Verbeek as the Australian manager, Arnold along with Henk Duut served as his assistant to the national side during the 2010 FIFA World Cup in South Africa.
Graham Arnold