ANGE Postecoglou's time in Japan has ended with a nightmare defeat after his Yokohama F Marinos side were dumped out of the Emperor's Cup by fourth-tier opposition.

The Greek-born Australian has reportedly agreed terms to replace Neil Lennon as manager of the Parkhead club but that move has been held up by red tape as the 55-year-old does not hold the necessary coaching credentials to take the reins of a top-flight European team.

The Premiership runners-up are in talks with European football's governing body to get the appointment pushed through as Postecoglou prepared for his final game in charge of Yokohama on Wednesday.

But what should have been a routine victory ended in disaster as Postecoglou's men were knocked out on penalties at home to Honda.

The visitors took the lead in the first half when goalkeeper Yuki Kusumoto scored from the penalty spot but Yokohama forced extra-time through an equaliser from Elber. The two sides exchanged goals in the next half hour to take the tie to penalties, where Honda triumphed 4-3.

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The result is one that Postecoglou will be keen to forget but while disappointing, the gap between the two sides is perhaps not quite as stark as the league tables would suggest. Yokohama were the heavy favourites but Honda have won the fourth tier title four years in a row and have essentially refused promotion by not applying for a J-League license.

Clubs in the top three divisions in Japan are not allowed ties to corporate identities and the Honda team - a workers' side for the car manufacturer - are unwilling to sever them and give up their amateur status.

Celtic's pursuit of Postecoglou has been frustrated by the fact that the former Australia manager does not hold an A or B coaching license with UEFA and has not enrolled in a Pro License course - something that is a prerequisite for managing a top-flight European team.

A UEFA spokesperson said: "Mr Postecoglou does not currently hold the UEFA Pro Licence.

"A recognition of competence procedure has been initiated. The process could take several weeks.

"We don't have any further information to provide at this stage."