LONDON (AFP) - Alex McLeish resigned Tuesday as coach of the Scotland national football team, the Scottish Football Association (SFA) said in a statement.

The move would appear to clear the way for McLeish to become the manager of English Premier League strugglers Birmingham City, who have been linked with a move for the former Rangers boss.

Birmingham, who saw Steve Bruce leave the club last week to join top-flight rivals Wigan, have called a news conference for 1030GMT Wednesday where it looks as if they will confirm the appointment of McLeish as their new manager.

"It is with regret that I can confirm that Alex McLeish has notified the Scottish FA that he has resigned from his position as national team coach with immediate effect," said SFA president George Peat in a statement.

McLeish had been widely praised for his work in his 11 months with Scotland after Walter Smith resigned to return to Rangers.

Scotland only narrowly failed to qualify for the Euro 2008 finals after a 2-1 defeat to world champions Italy earlier this month.

Their qualifying campaign had also seen Scotland beat France, losing finalists at the 2006 World Cup, both home and away.

"I am disappointed that Alex has chosen this course of action," Peat added. "He is an outstanding manager who has done a fantastic job with the national team. Everyone at the SFA and indeed Scotland fans around the world were looking forward to Alex leading us into the World Cup qualification campaign.

"This is why we chose to offer Alex an extended contract while we were in South Africa (for the 2010 World Cup qualifying draw).

"Sadly, he has chosen not to take up this offer. A special meeting of the SFA board will take place tomorrow (Wednesday) morning at 11am (1100GMT) to discuss the current situation."

McLeish's resignation came after the SFA rejected a formal approach from Birmingham to speak to McLeish.

The former Scotland defender, who played under Alex Ferguson when the Manchester United manager was in charge of Aberdeen, won seven trophies at Rangers having made his name as a manager with Motherwell and Hibernian.

If he joined Birmingham it would see him renew his rivalry with Martin O'Neill, who is in charge of city top-flight rivals Aston Villa.

Northern Irishman O'Neill, recently linked with the now vacant England job, was manger of Rangers's arch Glasgow rivals Celtic when McLeish was at Ibrox.

Wigan are currently second bottom in the Premier League, three points behind Birmingham. But Bruce left the Blues amidst growing uncertainty as to whether a proposed takeover by Hong Kong businessman Carson Yeung would go through.

Birmingham co-owners David Gold and David Sullivan have given Yeung until Friday to inform them if he can complete what has been reported as a 50 million pounds (100 million dollars) move.

Eric Black, who played alongside McLeish at Aberdeen, quit Birmingham on Tuesday, where he'd been the assistant manager, prompting speculation he would rejoin Bruce at Wigan.

Dave Whelan, the Wigan chairman Dave Whelan paid three million pounds (six million dollars) in compensation to Birmingham for Bruce's services.

And now it appears that Birmingham will have to pay the SFA for the loss of McLeish. "There will be compensation and I think it would be substantial," SFA chief executive Gordon Smith told Sky Sports.

McLeish, while in Durban for the World Cup draw said it was "absolutely crazy" for there to be talk at that stage for him to be spoken of as the new manager of Birmingham.

Among those who could replace McLeish as Scotland manager are current assistant Roy Aitken, former international midfielders Gary McAllister, previously considered for the post when Walter Smith resigned in January, and Graeme Souness.

Billy Davies, who left English Premiership basement side Derby on Monday, Dundee United manager Craig Levein and McLeish's former Aberdeen and Scotland team-mate Mark McGhee, now in charge at Motherwell, could also be in the running.