Smith named as Rangers boss, SFA set to sue

Rangers named Walter Smith as their new manager yesterday, sparking a swift and bitter response from the Scottish FA.

Smith quit his post as Scotland manager to return to the club he managed from 1991 to 1998, steering them to the league title in his first six full seasons in charge to complete a run of nine consecutive championships.

The Scottish FA, who on Monday turned down Smith's request to be released from his contract, confirmed that he had resigned and that they would begin proceedings against Smith and the club who have been champions of Scotland 51 times.

"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," the SFA said in its statement.

"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.

"In the absence of agreement, proceedings will require to be raised against Mr Smith for breach of contract and Rangers Football Club for inducement to breach the contract."

David Taylor, the SFA's chief executive, added: "Walter's departure is a serious blow to the Scottish FA. He has done an excellent job for us."

Scotland are currently top of their qualifying group and on course to qualify for next year's finals in Austria and Switzerland.

Smith replaces Frenchman Paul Le Guen who left by mutual consent last week after failing to mount a title challenge to arch-rivals Celtic.

Rangers also said that former striker Ally McCoist would be Smith's assistant.