John Collins has rocked Hibernian by walking out on his job as manager of the Easter Road club.

The 39-year-old revealed his frustration at being denied substantial funds to strengthen his squad, having seen the club make a profit of over £8million (€11m) on player trading since his appointment on October 31 last year.

Collins said: "During my time as manager we have brought in over £8.8m (€12m) and paid out £360,000 (€500,000) in compensation [on new players].

"My reasons for resigning are that I feel I have taken the club under the current resources available as far as I can."

The former Scotland midfielder steered Hibernian to their CIS Insurance Cup final triumph in March, ending a 16-year wait for major silverware.

However he also saw a host of key players leave the club, including Scott Brown, Kevin Thomson, Steven Whittaker, Ivan Sproule and Chris Killen.

Despite having to rebuild his squad on a small budget, Hibernian started this season strongly and are currently fifth in the Clydesdale Bank Premier League.

The Scottish Football Association immediately denied Collins had quit to become Scotland manager, a job he has recently been linked with.

Collins believes he leaves the club who handed him his first assignment in management, and with whom he also began his playing career, in good health.

Collins said: "I feel that I leave with the CIS Cup in the trophy cabinet, a fine set of young players, a great new training ground."

In a statement, he added: "I would like to take this opportunity to wish Hibernian FC, the players, staff and backroom staff, Tommy Craig in particular, for their support during my time as manager.

"As a former player of Hibs it has been a great honour for me to be manager during this period when we won the CIS Cup, Hibs' first trophy for 16 years, and have developed so many excellent young players."

On the day before he resigned, Collins had joined chairman Rod Petrie and and club owner Sir Tom Farmer at the opening of Hibernian's new £4.9m (€6.7m) training complex.

He stressed then that his contract, which was due to run until the end of next season, meant any talk of him becoming Scotland manager was speculative.

Regarding that job and Collins' resignation, an SFA spokesman stressed: "There is absolutely no connection."

Collins may have ended Hibernian's long wait for trophy success, but he did not have everything his own way in Leith.

Barely a fortnight after the CIS Insurance Cup final victory over Kilmarnock, Collins was facing a rebellion from several first-team players which he managed to see off.

When asked in April whether he could be forced to turn his back on his first managerial job, Collins replied: "Don't be ridiculous."

He added at the time: "You have to be thick-skinned, focused, determined and know where you want to go."

During the summer he overhauled the playing staff, partly by choice but largely by necessity after losing the likes of Brown and Killen to Celtic, Whittaker to Rangers, and Sproule to Bristol City.

Collins had a successful playing career which took him from Hibernian to Celtic, Monaco, Everton and Fulham.

He won 58 Scotland caps, scoring 12 goals for his country, and the Hibernian job was his first in management. He was also linked with a move to QPR earlier this season.