Alex McLeish has resigned as Birmingham City manager prompting speculation that he is in the running to take charge of rivals Aston Villa.

It is believed that McLeish would welcome the opportunity to speak to Randy Lerner, Aston Villa’s owner, although Herald Sport understands that no approach has been made.

The former Rangers manager yesterday tendered his resignation at St Andrew’s in an email to the acting chairman, Peter Pannu, and the odds on him replacing Gerard Houllier across the city immediately fell. Lerner is known to admire McLeish’s demeanour, his work in the transfer market, and the success he achieved at Ibrox, although some Villa supporters reacted angrily at the thought of a former Birmingham manager moving to Villa Park.

McLeish endured a tense relationship with the Birmingham City hierarchy, particularly with Pannu, who remarked that the Scot was “no Jose Mourinho” when he joined the board following Carson Yeung’s takeover in October 2009. McLeish is also thought to have been unhappy when the board announced that promotion back to the Barclays Premier League next season was expected.

He won the Carling Cup in February, only to see the team relegated on the final day of the season, but he remains highly regarded in the Premier League.

If he was to move to Villa Park, there is a strong possibility that he would take Barry Ferguson with him, since the former Rangers captain is known to be looking for a move now that wage cuts have been imposed following relegation.

While McLeish took charge of his own fate at St Andrew’s, Billy Davies found himself out of a job when he was sacked by Nottingham Forest.

Davies took the team to the Championship play-offs in two successive seasons, but often railed against the way the club was run by Nigel Doughty, the chairman. In particular, Davies was frustrated by the need to have every transfer ratified by an acquisitions committee, which was headed by David Pleat. His departure was widely expected, given his strained relationship with Doughty, and Davies had no comment to make when contacted yesterday. He will, though, be among the contenders to succeed Dave Jones at Cardiff City.