Portsmouth are searching for a new boss, following the sacking of Guy Whittingham.
Richie Barker and Martin Allen are among the favourites.
The pair made a combined total of 257 appearances for Portsmouth and former defender Hreidarsson offered to play for the club for nothing last year.
He has managed in his native Iceland, with IBV Vestmannaeyjar, where he signed keeper James, 43 in April.
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