Walter Smith has been appointed manager of Rangers for a second time.

He has quit his post as Scotland head coach to return to the job he gave up in 1998 and has signed a three-year contract.

The Scottish Football Association have confirmed their intention to take legal action against Smith ''for breach of contract'' and against Rangers ''for inducement to breach the contract".

David Taylor, SFA chief executive said: ''Walter's departure is a serious blow to the Scottish FA.

''He has done an excellent job for us and the Scottish national team. We are very disappointed that he has chosen to leave us at this critical time in our Euro 2008 qualification campaign".

Here, the Daily Echo looks at who Scotland could turn to next.

GEORGE BURLEY.

After cutting his managerial teeth at Ayr and Colchester, Burley took Ipswich into Europe.

Ipswich slumped before Burley saw promising spells at Derby and Hearts end prematurely.

The former Scotland full-back has converted Saints into Championship promotion challengers and his brand of attractive football would make him a popular appointment.

GORDON STRACHAN.

Would be a popular choice among members of the Tartan Army, and would certainly have the passion for the job. But the ex-Saints boss is unlikely to leave Celtic midway through the season, especially with the club still in the Champions League and preparing to meet Inter Milan.

TOMMY BURNS.

Burns was brought in as assistant manager by Berti Vogts and stayed loyal to the German despite scathing criticism from the media.

The former Celtic and Reading boss led the Scots in a 4-1 friendly defeat by Sweden before Smith took over and remained in the number two role under his former Old Firm rival.

Burns, now Parkhead first-team coach and youth development chief, would be a firm favourite to take over from Smith in the short term at least.

ALEX McLEISH.

The former Aberdeen player won 77 caps for Scotland and has been out of work since leaving Rangers in the summer.

He led Motherwell to second place in the SPL, and Hibernian to third and a Scottish Cup final. Rangers won seven trophies under McLeish, but poor results last season saw him leave.

The 47-year-old would surely be considered by the SFA, although reports claim he wants a return to club management.

CRAIG LEVEIN.

The former Cowdenbeath boss took Hearts to successive third-placed finishes in the SPL before joining Leicester.

However, he failed to spark a promotion campaign with the Coca-Cola Championship side.

After a brief spell at Raith, the 42-year-old has made an immediate impact at Dundee United, but may be considered too inexperienced for the Scotland job.

GRAEME SOUNESS.

Made his name as a manager in Scotland when he transformed Rangers in 1986 but has had mixed success since leaving for Liverpool.

Had short spells at Saints, Torino, Benfica and Galatasaray before taking Blackburn back into the Premiership.

Has been out of work since ending a disappointing spell at Newcastle and, with 54 Scotland caps, may fancy leading the national team - if his planned takeover at Wolves fails.

But his popularity in Scotland was not enhanced by his combative style at Ibrox and he had a poor relationship with the SFA.

KENNY DALGLISH.

The Scotland hero won a record 101 caps for his country and bagged 30 goals, but his stock fell when his 'dream team' return to Celtic with John Barnes turned into a nightmare.

Won titles as Liverpool and Blackburn boss but quit both jobs. Led Newcastle to a second-placed finish before United's form took a nosedive.

The international job could suit Dalglish, but he may be reluctant to endanger his status among the Tartan Army.

CRAIG BROWN.

Brown is one of Scotland's most successful managers, having led them to three major tournaments.

But failure to qualify for Euro 2000 and the 2002 World Cup saw him leave amid criticism of his cautious tactics and reluctance to bring in fresh talent.

Now 66, Scotland appear unlikely to turn to Smith again.

BILLY DAVIES.

Sacked after a rollercoaster spell with Motherwell, Davies rebuilt his reputation as one of Scotland's most promising coaches under Craig Brown at Preston.

Davies succeeded Smith and took the Coca-Cola Championship side to successive play-offs before turning Derby into promotion candidates this season.

Would be a popular choice but is unlikely to leave club football at the age of 42 and compensation with Derby would be an obstacle.

DAVID MOYES.

After taking Preston to within 90 minutes of the Premiership, Moyes led Everton to a top-four finish in the English top flight.

Survived a difficult start to last season and would be an expensive option for the SFA.

Moyes is a possible Scotland boss in the future but the 43-year-old is unlikely to shelve a promising career in the Premiership at this stage.