Lloyd said that despite England having struggled in one-day internationals and Twenty20s under Giles, a combination of the former spinner, Graham Thorpe and Paul Collingwood could be good for the national team.
"Giles has every chance of getting it but what's happened recently hasn't done him any favours - the team haven't done him any favours," Sky Sports News quotes Lloyd as saying. "I've done this job and you need the players.
"He's got competition, he really has, but Giles, Collingwood and Thorpe is a good mix and everyone is waiting to see [if it transpires]."
England have won just five of 18 limited-overs matches this year.