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Scotland standing firm over Smith Smith appointed boss of Rangers
(1 day later)
The Scottish Football Association (SFA) says there is "no change" regarding Rangers' approach for Walter Smith to become their new manager. Walter Smith has quit as Scotland coach to become boss of Rangers for a second time after agreeing a three-year deal.
BBC Scotland understands Smith will quit his position as Scotland coach to replace Paul Le Guen at Ibrox. The Scottish Football Association will now take legal action against him "for breach of contract" and against Rangers "for inducement to break the contract".
The SFA refused Smith permission to be released from his contract on Monday and the governing body said it had not altered its stance. Smith, 58, replaces Paul Le Guen and will be assisted by former Rangers favourite Ally McCoist.
Smith is understood to have said his farewells to staff at the SFA. Rangers chairman Sir David Murray said: "It's a great pleasure to welcome Walter and Ally back."
Interview: Former Scotland boss Craig Brown Media Conference: SFA chief executive David TaylorInterview: Former Scotland boss Craig Brown Media Conference: SFA chief executive David Taylor
Former Scotland manager Craig Brown has called for a compromise to be struck, allowing Smith to oversee Scotland's next two Euro 2008 qualifiers against Georgia and Italy. No agreement has been reached with Mr Smith or Rangers on any compensation payment SFA statement
Smith will succeed Le Guen once compensation has been agreed, with Scotland striker coach Ally McCoist expected to join his staff at Rangers. Murray added: "I've great respect for both men and their achievements and I am convinced they will take the club forward."
The Scotland coach's contract runs until the summer of 2008 and SFA chief executive David Taylor said after talks at Hampden on Monday that he wanted him to stay. However SFA chief executive, David Taylor, said: "Walter's departure is a serious blow to the Scottish FA.
Speaking after the talks, Taylor said: "Following contact from Rangers football club, we held a meeting this morning with Walter Smith. "He has done an excellent job for us and the Scottish national team. We are very disappointed that he has chosen to leave us at this critical time in our Euro 2008 qualification campaign."
Walter Smith asked to be relieved of his contract as national team manager for Scotland SFA chief executiveDavid Taylor An SFA statement said: "At a meeting this morning with the chief executive of the Scottish FA, Walter Smith delivered a letter of resignation with immediate effect from his position as national coach of the Scotland team.
"At this meeting Walter Smith asked to be relieved of his contract as national team manager for Scotland. "No agreement has been reached with Mr Smith or Rangers Football Club on any compensation payment to be made for the early termination of his employment, which is in breach of his contract with the Scottish FA."
"This request has been refused and Rangers have been advised accordingly." Smith said: "I am delighted to return to Rangers as manager. This club has always been in my blood and I can't wait to get started.
Taylor said Smith "understands" the stance taken by the SFA, adding: "He is under contract with the SFA and we have made our position clear. "I am looking forward to teaming up with Ally and first-team coach Kenny McDowall.
"There is no action to be taken by the SFA, it is a matter for Walter or Rangers." "I worked side by side with Ally during our time with the national team and I am also delighted Kenny has agreed to join us at Ibrox.
If Smith does take over it would be his second spell at Ibrox, after helping Rangers win nine successive titles before resigning in 1998 and moving to Everton. "Ally is someone with a strong Rangers background. He's young and ambitious and he's given up quite a bit to take up this job.
"His enthusiasm will be an enormous help."
606 MYSPORT: DEBATE Fans who think that Smith and McCoist will wave a magic wand and bring back the glory years are deluded IRN 606: Have your say
McCoist was overjoyed at returning to the club, saying: "It was a privilege to pull on the Rangers jersey for so many years but I am delighted to return as assistant manager.
"I was honoured to be named in the greatest ever Rangers team and included in the club's Hall of Fame, but this is something really special. I know the club inside out and I am ready for the challenge."
This will be Smith's second spell at Ibrox, after helping Rangers win nine successive titles before resigning in 1998 and moving to Everton.
Both Smith and Rangers legend McCoist have played a pivotal role in Scotland's stunning start to their Euro 2008 qualifying campaign.Both Smith and Rangers legend McCoist have played a pivotal role in Scotland's stunning start to their Euro 2008 qualifying campaign.
Scotland are the surprise Group B leaders in the Euro 2008 qualifying phase, ahead of world champions Italy and World Cup runners-up France.Scotland are the surprise Group B leaders in the Euro 2008 qualifying phase, ahead of world champions Italy and World Cup runners-up France.
It had been suggested that Smith would undertake a dual role and continue as Scotland manager until the end of the present European Championship campaign. Smith had offered to work in a dual role with Scotland and Rangers until the end of the season but the SFA would not entertain the suggestion.
"It would be a major disruption to lose Walter and I would be disappointed if it does happen," added Taylor, who revealed that McCoist does not have a contract with the SFA.
606 MYSPORT: DEBATE Fans who think that Smith and McCoist will wave a magic wand and bring back the glory years are deluded IRN 606: Have your say
"Walter is the Scotland team manager, and I hope it stays that way," said Taylor.
"He's got a contract for another 18 months and that's the issue here."
Sheffield United assistant manager Stuart McCall could also be part of the new management team that may see McCoist and McCall take the reigns in the long-term.
But, while McCall told BBC Sport he would "crawl over broken glass" to return to Rangers, he also added that "I don't think it will happen".
Ian Durrant took charge of the first team for Sunday's Scottish Cup third round defeat at Dunfermline Athletic.
"If it does happen that Walter comes I will be delighted," said reserve coach Durrant.