The Scottish Football Association last night agreed on a five-man shortlist from which the new national coach will be chosen.

The governing body's office-bearers met at Hampden Park yesterday to sift through the applications received since Alex McLeish departed to become manager of Birmingham City.

They compiled a list of suitable contenders and interviews are scheduled to commence next week with a view to an appointment by the end of the month. Mark McGhee is a leading contender on a shortlist that is also believed to include Joe Jordan, Tommy Burns, Billy Davies and either Jim Jefferies or Craig Levein, who have also been under consideration. One of them is expected to be invited for interview.

McGhee's case is the most compelling and now most complex. The Herald understands the SFA will be sympathetic to the sensitivities of the Motherwell manager's situation in light of the recent death of Phil O'Donnell.

The tragedy has complicated McGhee's candidacy for a job he had previously expressed an interest in. He has pondered the moral hypothesis of leaving a club in a state of mourning should he be offered the £400,000-per-year post. The SFA will not press him to confirm his availability for the post but will allow him time before deciding whether or not he wishes to be included in the shortlist.

One possible compromise, should McGhee impress at the interview stage, would be for him to remain in charge of Motherwell for the duration of the Clydesdale Bank Premier League campaign and for him to take control of Scotland on an initial part-time basis.

Scotland do not have a competitive fixture until September 6, when their World Cup 2010 qualification campaign starts with an away match against Macedonia and a visit to Iceland four days later.

Even though the Scotland package is eclipsed by the £6m salary commanded by Fabio Capello, the new England manager, all the candidates to succeed McLeish would be in line for a pay-hike from their current wages.

Davies has been out of work since he was sacked by Derby County and is still negotiating his severance package from Pride Park through his lawyer. He has publicly expressed his interest in the post but seeks a clear five-year commitment from the SFA and an agreement that he will be able to influence a restructuring of the youth development set-up.

In a fresh twist, both Levein and Jefferies, outside bets for the Scotland job, have also been included on the shortlist for a possible return to Tynecastle as manager of Hearts.