The Republic of Ireland were able to employ Giovanni Trapattoni after entrepreneur Denis O'Brien donated £1.5million to pay half of the former Italy manager's salary over two years.

While the Irish were denied a World Cup play-off penalty shoot-out by the hand of France striker Thierry Henry, Scotland finished third in their group under George Burley, who was reported to be on £300,000 a year.

SFA chief executive Gordon Smith yesterday revealed there were some eye-catching names among the applicants to replace the sacked Burley, but he will concentrate on compiling a shortlist before deciding whether a similar financial backer is needed.

"We talked about the fact Ireland have Trapattoni as manager but he is sponsored," Smith said.

"But we don't have a sponsor specifically for the manager, that would be another factor completely.

"If we looked at the salary aspect beyond the levels we can afford to pay, and it was someone who was looking for higher, we would have to get a sponsor for that.

"That is something that hasn't really been considered at this moment."

The new manager will take over at a time when pessimism permeates Scottish football but Smith insists there is hope for the future despite criticism of youth development.

Smith was speaking at a festival to mark the success of the SFA and Bank of Scotland's Soccer One programme, which has created more than 1,000 school football teams.

"This is a programme which brings in all the first years at secondary schools but we will also be launching very shortly a Soccer Two programme to bring in second-year pupils," Smith said.

"And by this time next year we will also have a Soccer Three programme and that will involve a lot of kids who never got an opportunity to play the game or even get coaching.

"It's about volunteers as well, young volunteers and students. We give them their coaching course free on the basis that they also volunteer to help run youth football.

"Going forward the game will be in a healthy state. A lot of people are very critical of it, I think more critical than we deserve.

"I think it's a lot more positive but we still have to make sure we put the right things in place."

Meanwhile, Rangers boss Walter Smith believes it is "natural" Craig Levein is one of the favourites for the Scotland job.

Smith, who has ruled himself out of a return to the post, takes his side to Tannadice to face Levein's Dundee United in the Clydesdale Bank Premier League tonight.

He said: "Naturally, I can see why Craig has been mentioned.

"He has done an excellent job in picking up Dundee United, and I think it would be a natural thing for the SFA to look at him."

Smith added: "I would prefer the job to go to a Scot."