Former boss Rob Smith was sacked last month after the Bucks missed out on a Blue Square North play-off spot.
Lyttle, 38, who had spells with Nottingham Forest and West Brom, told the Shropshire Star: "I think it's a great job to go for.
"I'm having a great time at Tamworth but I want to get into management and I think I have a great deal to offer."
He added: "I've had a decent playing career and now I want to take the next step. Hopefully I'll have a chance to show Telford what I'm all about."
Source: BBC Sport
Source: BBC Sport