The German is out of work following his departure from the Australian national team post last month and has been linked with the assistant role at the Victory.
But Muscat, who replace new Socceroos boss Ange Postecoglou at the Victory helm, says Osieck is not in the frame.
"That's news to me. That's not something I've given any thought to," Muscat said.
"I've had an opportunity over three weeks to really analyse what I want and how I want to set up a structure and I've purposely taken my time in doing that.
"I'm adamant that I want to bring someone else in.
"We're a body down where the structure was three weeks ago."
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