Brian Kerr is to leave the job of Faroe Islands manager

Brian Kerr and Nigel Worthington after the Euro 2012 qualifier between Northern Ireland and the Faroe Islands in August
Kerr (left) hinted that he was interested in succeeding Nigel Worthington (right) as Northern Ireland manager

Brian Kerr is to step down from his position as Faroe Islands manager after he was unable to agree a contract extension to stay in the role.

The Faroes FA were said to be keen for the former Republic of Ireland boss to remain in the role but the Dubliner was unable to agree terms.

Kerr expressed interest in the vacant Northern Ireland job earlier this month but later appeared to backtrack.

The Faroes are in the same World Cup group as the Republic of Ireland.

Kerr will step down from his position with the Faroes after his current deal runs out next month.

After being linked with the Northern Ireland role following Nigel Worthington's resignation, Kerr initially said:"If they offer me the job tomorrow I might well take it."

However, he later said that he didn't expect to be approached by the Irish FA about the role.

Kerr guided the Faroes to a shock win over Estonia and a draw against Northern Ireland in their recent Euro 2012 qualifying campaign.

Jim Magilton, Michael O'Neill and Iain Dowie remain the favourites to succeed Worthington as Northern Ireland boss after Martin O'Neill ruled himself out of the running.

Michael O'Neill guided Shamrock Rovers to the League of Ireland title earlier this week and the former Northern Ireland international said on Wednesday that he was "hopeful" he would sign a new contract with the club.

"There are no huge issues there, I don't see any major problems. It's not a financial issue around the contract," O'Neill told RTE.

"I haven't let my focus deviate from the job at hand.

"There has been speculation during my tenure at Rovers about my future but that's just the media."