Former Coventry City player Michael O'Neill is set to continue as manager of Northern Ireland after turning down the Scotland job, Press Association Sport understands.
The 48-year-old was believed to be close to taking over as Scotland boss following talks last week with the Scottish Football Association.
The SFA had agreed to meet a £500,000 compensation payment to the Irish FA in order to secure the services of O'Neill, who had described talks between the parties as "productive".
However, after a period of deliberation, O'Neill, who lives in Edinburgh, has decided against taking the post to succeed Gordon Strachan, and will instead remain in charge of Northern Ireland following their failed World Cup qualification campaign.
The former Dundee United and Hibernian midfielder has two years left to run on his current deal with the IFA, but has already been offered an extended contract until 2020.
After a spell with the Sky Blues from 1996 to 1998, which heralded just 5 appearances, O’Neill retired from playing in 2004 and has gone on to carve out a more successful managerial career, winning the League of Ireland with Shamrock Rovers, their first league title since 1994.
O’Neill guided Shamrock to the group stages of the Europa League in the 2011/12 season, becoming the first manager to guide a League of Ireland team to the group stages of a European competition.
In December 2011, he left Shamrock Rovers to take the Northern Ireland job, and won six and drew three of the ten qualification matches to take their place in the European Championships in France last summer, where they reached the second round.
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