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 confirmed: "We have had initial discussions with the manager's agent and these will continue tomorrow.

"But we have reached agreement with Southampton."

Saints chairman Leon Crouch said: "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."

It is likely the club will appoint a short-term caretaker boss while they decide who to bring in.

Acting chief executive Lee Hoos added: "We do have some ideas but obviously we could not set any wheels in motion until the SFA had made their decision.

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

"Now we will look at the various options and then draw up a short-list of candidates to take this club forward. It is important we follow a logical, thorough process that ensures we get the best possible candidate for the job.

"In the mean time we have a very important FA Cup tie here against Bury on Saturday and hopefully we will have a good turn-put of fans to cheer us through to the last 16.

"That game is now our immediate focus and I am confident the players will give everything they have."