LONDON - Scottish FA chief executive Gordon Smith has revealed he has "at least six or seven" candidates in mind to replace Alex McLeish but will not take a financial gamble on a new boss.
McLeish resigned as Scotland manager last month to achieve his ambition of managing in the Barclays Premier League, joining Birmingham.
Smith does not expect to make an appointment until early in the new year, but he should have a short-list written up before Christmas.
He has stressed that Scotland's failure to qualify for a major finals since the 1998 World Cup affects the budget for a new boss.
The SFA chief admitted the reported £6.5million wage for likely new England coach Fabio Capello was way out of Scotland's league.
"But we still think we'll get the right person in place," Smith told BBC Radio Five Live.
"We are researching the market - we have at least six or seven people we are looking at.
"We have an under-21s coach we want to be putting in place very soon - we are further on with that process."
Smith will recommend names to the SFA board, and those in the frame could include Motherwell manager Mark McGhee, Hibernian boss John Collins, former Rangers chief Graeme Souness, former Derby boss Billy Davies and Dundee United manager Craig Levein.
Whoever the new man is, Smith underlined the SFA's commitment to spending within the association's means, and the money is not in place to gamble on a big-name boss.
"If the figures are true about Mr Capello that would almost be our budget for the year," Smith explained.
"That's the reason we have lost managers, because they get attracted to other jobs with more money.
"We are a small country and just have to accept it.
"The last time Scotland qualified for a tournament finals was 1998. That is a big factor - it all goes towards the budget.
"(If we'd qualified this time), that maybe would have allowed us to spend more money on the coach."
