McClaren, a former Middlesbrough manager and assistant to Alex Ferguson at Manchester United, was sacked last November in the wake of England's failure to qualify for Euro 2008.
"All my career has been upwards. For the first time in my life I am out of work," he was quoted as telling The Times on Friday.
"I think I can go into the level I was before. I've worked with England, Manchester United. I've won a trophy and had European football with Middlesbrough.
"I've been working with top players, at Premiership level, for many years."
McClaren has been encouraged by a fine start to the Premier League club career of his England predecessor Sven-Goran Eriksson, who has steered Manchester City to fourth in the table.
GREAT JOB
"What I want to be is ready for the next challenge. That is something that Sven did very well in his year out of the game.
"He identified the players he would want when he got another job.
"I take massive heart from Sven and the way he's bounced back. I had great success previously and I know that I am not a bad manager."
McClaren, who has been replaced by Italian Fabio Capello, has no regrets about having gone into international management in the first place, saying: "If the England job was offered to me tomorrow, I'd take it. It is a great job.
"The 18 months were a fantastic experience. There is bound to be a feeling of unfinished business for me."
As for whether he would always be haunted by his spell in charge, he said: "It will always be there.
"But everybody's failings are always there. There are a lot of very successful people who have had a million failures before they succeeded.
"I know how to manage, I've been successful and I know I can do it again."
(Reporting by Trevor Huggins; Editing by John O'Brien)
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