Daley confirmed on Monday that he would not seek a new deal with the NSWRL after guiding the Blues to a 2-1 series victory with a win in last month's game three decider in Brisbane.
The 56-year-old Daley won two series from seven in charge of NSW across two stints.
King, who was appointed to Michael Maguire's Blues staff in 2024, was part of Daley's coaching team over the last two series.
Daley gave King his backing on his regular Sky Sports Radio show the Big Sports Breakfast, where NSWRL chief executive Dave Trodden indicated a decision on the Blues' next coach would be finalised imminently.
"Matty King is a first grade coach now, he's ready to go," Daley said.
"I don't know what the NSWRL are going to do or who they're going to appoint but I'd like to see a guy like Matt King take over the role.
"He's been there, he's been a servant and he's had great input over the last three years."
King has never coached at NRL level but has built an impressive resume under Daley, Maguire and at NRL level as a No.2 to Sydney Roosters coach Trent Robinson.
The 45-year-old was pipped to the Blues coaching gig by Daley in 2025 and Trodden, who did not mention the Roosters assistant by name, said on Monday a decision on the next NSW coach was not too far away.
"We're just working through some final details at the moment, the terms of the contract, and I don't think that's too far away," Trodden said on Sky Sports Radio.
"Hopefully we will be able to nail that in the coming days, watch this space, we're pretty close."
King's path to the NSW job has been made clearer by the fact Ivan Cleary had ruled himself out of replacing Daley in the aftermath of game three.
Cleary has indicated an eagerness to venture into representative coaching when he steps down as Penrith coach at the end of 2027 but has explained he has no desire to juggle the Blues gig alongside his club commitments.
"I'm going to give Panthers my all and I'm looking forward to doing that," Cleary said last month.
Daley, who only had a two-year contract, said he deliberately delayed making an announcement on his future.
The former Canberra great was widely criticised during his second stint as NSW coach and has spoken of the toll the pressure had taken on his family.
"You've always got to be careful that you don't make decisions based on emotion," Daley said.
"You have to think things through and when we won game three you sit back and reflect – and that's why I didn't want to make the announcement straight away… I felt like it was the best time to leave and the best time to pass the baton onto someone else."
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