The Scottish Football Association could appoint a coach to the national team as early as next week, with Alex McLeish the leading contender on a shortlist of four.

The former Rangers manager is believed to be the preferred candidate over Tommy Burns, the Celtic and Scotland coach, Gary McAllister, the former Scotland captain, and Jim Jefferies, the Kilmarnock manager.

The SFA board of directors met yesterday to discuss potential successors to Walter Smith, who resigned last week to rejoin Rangers.

Chief executive David Taylor will spend this week making contact with those on the shortlist. They will then be invited for interview with Taylor, president John McBeth and two vice-presidents, before the final decision is ratified by the full board.

Smith led Scotland to the top of European Championship qualifying group B, which includes World Cup finalists France and Italy, before his departure. With crucial matches against Georgia and Italy in March, the SFA are keen to have the new man in place soon. "We would like to get the matter settled as quickly as possible," said Taylor. He added: "If we can get the process under way, hopefully we can be in a position in the not too distant future of announcing the manager."

Taylor declined to discuss the identities of potential candidates but he did confirm the new manager will be a Scot.

He said: "Yes, I can confirm that at this stage. We said earlier that there was likely to be a preference to go for a Scottish manager at this point. That is what we have done."

Yesterday's meeting also saw the SFA ratify their compensation agreement with Rangers for the loss of Smith.

The SFA had threatened legal action against both Smith and his new employers but are understood to have agreed a settlement of £400,000.

Taylor said: "It was a situation that nobody wanted and I'm just very glad that we have managed to put that behind us.

"Walter did an excellent job for Scotland. But we move on now, the Walter Smith era is over and we have to look to the future."

Taylor saw no reason why the SFA's future relationship with Rangers should be tarnished by the wrangle over Smith.

"I hope not,' he said.

"Obviously, we had our differences of opinion last week.

But we move on and I think it's important there is a good relationship between one of our biggest clubs and the Scottish Football Association." Former Scotland manager Berti Vogts looks set to become the coach of Nigeria. next week. The German has been out of management since leaving the Scotland job in November 2004.