The Scottish Football Association are close to appointing George Burley as the new Scotland manager after reaching an agreement with Southampton over compensation.

Saints boss Burley has been confirmed as the man the SFA want to succeed Alex McLeish as the new national team boss.

A spokesman for the SFA has said: "We have had initial discussions with the manager's agent and these will continue tomorrow.

"But we have reached agreement with Southampton."

The only way Burley will not become the new Scotland boss is if he turns down the position, however after agreeing to be interviewed for the post that seems inconceivable.

The 51-year-old was the preferred candidate of the SFA's interview panel, which included chief executive Gordon Smith and president George Peat.

Motherwell manager Mark McGhee, Celtic first-team coach Tommy Burns and former Rangers boss Graeme Souness were all considered for the post, which became vacant when Alex McLeish resigned on November 27 to take charge of Barclays Premier League side Birmingham.

The SFA's board ratified the panel's choice this morning, with Peat insisting: "We think we've got the right man."

An approach to Southampton followed and the swift agreement there will have come as a relief to Hampden chiefs.

Burley is expected to make his first appearance as Scotland boss before the end of the week, and a press conference could take place on Thursday.

Peat said on Sky Sports News: "We've gone down the same route as we did with the appointments of Walter Smith and Alex McLeish.

"It's been difficult from the point of view there's been little to choose between the candidates we were discussing."

In Burley, the SFA are confident they have chosen a man of stature who can be a figurehead for the Scottish game, in the same impressive way McLeish was during his 10-month spell in charge of the national team, and Walter Smith before him.

Crucially they will want to ensure that, unlike Smith and McLeish, Burley will not be tempted away from the job while still under contract if results make him a target for club sides.

Burley has spent most of his career, both as player and manager, in English football.

At Ipswich he is a club legend after making 500 appearances for the Tractor Boys and later taking charge as manager from 1994 to 2002, a spell during which Ipswich clinched a fifth-place finish in the Premier League and qualified for the UEFA Cup.

In Europe they memorably beat Inter Milan at Portman Road before their adventure ended with a heavy defeat in the San Siro.

He had a short stint with Hearts in 2005 which ended less than four months after his appointment, even though the Jambos were top of the league at the time of his departure after starting the league season with eight straight wins.

A disagreement with new majority shareholder Vladimir Romanov saw Burley leave Tynecastle suddenly, however he was soon back in management at Southampton.

Burley has also bossed Ayr, Colchester and Derby.

He has been with the Saints since December 2005, when he replaced Portsmouth-bound Harry Redknapp, but has been unable to take his team into the Barclays Premier League.

They came close last season, losing on penalties to Derby in the Championship play-off semi-finals.

They currently stand 13th in the Coca-Cola Championship and, since the SFA's interest materialised, there has not been a clamour from Southampton supporters calling for Burley to stay.

Providing negotiations over personal terms run smoothly, Burley will be handed the chance to lead Scotland to the 2010 World Cup in South Africa.

Scotland have not qualified for a major tournament since reaching the 1998 World Cup.

However they have soared to 14th in the FIFA world rankings after notable results under both Smith and McLeish, who each scored a victory over 2006 World Cup runners-up France, and the current generation of players are considered the best for a decade.

Burley said at the weekend: "It is a great honour that Scotland asked to speak to me.

"There is a lot to consider. I am very happy at Southampton but if your country asks to speak to you then it is only right to do so."

The Scotland job does not pay as well as top club jobs, with the annual salary thought to be between £300,000-£400,000, which is why the SFA could not seriously consider bringing in the pick of the country's coaches.

The likes of Everton's David Moyes, Celtic's Gordon Strachan and Manchester United boss Sir Alex Ferguson - who had a short spell in charge in the mid 1980s - would have been unrealistic targets.

In a statement, Southampton confirmed they had "reluctantly" given Burley the go-ahead to take the Scotland job.

Southampton chairman Leon Crouch explained: "George has done a terrific job here and we are all very sad to see him go.

"We would not have allowed him to talk to anyone other than Scotland and I don't think he would have left us for anyone else.

"I know he was very happy here and we were glad to have him. He is an experienced manager who commands respect.

"But it is a huge honour for anyone to take charge of their national side and we could not stand in his way.

"We thank him for all his hard work here and wish him all the best. I am sure he will do well for them."

Acting chief executive Lee Hoos insisted Southampton did not want to see Burley leave St Mary's for the Scotland position.

Hoos said: "We were hoping that they would look elsewhere but suspected this might happen because George is so well qualified to do the job."

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