Lee told BBC Sport: "I would be absolutely delighted to have to the opportunity to manage Plymouth Argyle.
"It would be a massive challenge to take on a big club like Plymouth Argyle and try and turn things around."
He added: "I think I could do a really good job for them and it would generate interest being a local lad."
Lee became chief executive at Torquay in May 2007 shortly after the club's relegation into the Conference.
The 53-year-old quickly appointed Paul Buckle as manager and then oversaw the side's promotion back into the Football League two years later, an experience he believes would stand him in good stead at newly-relegated Plymouth.
I would love to have the opportunity to manage the biggest club in Devon
Colin Lee
Lee said: "We addressed relegation very quickly at Torquay and within two seasons we were back in the Football League.
"Working with restrictions doesn't really concern me. It's all about getting the best out of players that are there."
Lee said he had no problem with the fact that any new manager at Home Park would have to work with an existing set of coaches, in Paul Mariner and John Carver
He said: "I tend to work with people, not against people.
"If those two are there, I haven't got a problem with it.
"In some respects it could be an advantage because they do know the players and they got some good results."
But with Lee still officially under contract at Torquay, the former Wolves and Watford boss said taking care of things at Plainmoor is his most pressing concern.
He said: "My first objective is to conclude my time at Torquay United.
The appointment must be an indication of the passion of the board
mabetony
"I'm still under contract and and I'm due to have a meeting with the board early next week to try and sort things out."
Lee, who was born in Devon, and has also had spells managing Walsall and Millwall, said taking the top job at Plymouth would be an experience to good to miss.
"I'm flattered by the speculation and would love to have the opportunity to manage the biggest club in Devon," he said.
Source: BBC Sport
Source: BBC Sport