Flanked by his former Motherwell assistant Maurice Malpas, Butcher today became the sixth manager of the Highland club since it was formed in 1994.

Former England and Rangers captain Butcher made the recruitment of Malpas a condition of accepting a challenge he admits is monumental.

He will retain his part-time position as Scotland assistant to George Burley, but has terminated his role as a Setanta television pundit.

"There's a huge challenge here to be met," said the 50-year-old, who replaces the sacked Craig Brewster.

"There has to be a great togetherness and effort in the remaining 15 games.

"I'm sure if the players do preserve their SPL status, they'll be heroes and that's what I'll be stressing to them.

"Obviously, 23 games have elapsed and the club have 17 points.

"There is a lot of ground to make up on the other teams, but Maurice and I are very eager to get to grips with the challenge.

"There's a lot of games to play, including those against teams around us home and away.

"It's down to application, effort and honesty now and I know there's a lot of that at this football club."

Insisting he would be able to fulfil both club and international duties without difficulty, Butcher stressed: "I spoke to George Burley and he gave me very good advice. He had no problems with it.

"You don't get many chances in life. I've had one or two setbacks in management - in the last two jobs in particular, where I very much stepped into the unknown.

"In this instance, it's not like that - I don't know all of the players here that well, but I know the SPL and the Scottish environment.

"Setanta were just fantastic. They said it's in your blood, it's what you want. George Burley was the same, but warned me it had to feel right.

"I spoke to George again late last night and this morning and he was very enthusiastic. If George felt it wasn't right for me then he would have said. I trust him."

Caley Thistle's players - after unconfirmed reports of dressing-room indiscipline during Craig Brewster's latter spell in charge - will encounter a man rarely afraid to speak his mind.

Recently, as Scotland faced Argentina in friendly action, Butcher refused to shake Diego Maradona's hand, mindful of the world football legend's infamous 'Hand of God' act against England back in 1986.

Inverness chairman George Fraser pledged to open the club's coffers to boost Butcher's survival bid.

The Highland outfit were criticised after handing predecessor Brewster finance for four new players less than a fortnight before sacking him.

But Fraser, who described Butcher as the man to lift the mood of his embattled club, insisted cash had not yet run dry.

Fraser said: "It is a measure of how far Caley Thistle have come that we were delighted by both the calibre and quantity of our applicants.

"But once we had interviewed Terry Butcher, he was the front-runner.

"The board were impressed by his accomplished record and his thoughts on how he could take this club forward.

"We continued our discussions late last evening and reached agreement with Terry, who will continue his duties as an assistant coach with Scotland but is giving up his television commitments.

"With 77 international caps, albeit for England, Terry brings vast experience and insight to the job.

"We're sure his arrival will enthuse our players and supporters alike.

"He'll take charge immediately and prepare for Sunday's match with Celtic.

"Terry brings with him his tried and trusted colleague Maurice Malpas, a Dundee United legend and a man with great knowledge of the SPL.

"Obviously, our first priority is to retain our SPL status and the new management team have 15 games to work to achieve that.

"But I know Terry has ideas beyond that and, hopefully, with everyone at the club working together, we will help Terry achieve his ambitions and in doing so raise this club to another level.

"We've worked extremely hard to make these appointments happen, but there is still finance available for Terry and Maurice to strengthen the squad before the February 2 deadline.