Martin O’Neill remains the favourite to be the next England manager but Stuart Pearce is now emerging as his most likely challenger.

English FA chiefs have made no secret of the fact that, all other things being equal, they would prefer an Englishman to succeed Sven-Goran Eriksson.

It is understood O’Neill is viewed as fitting into that category - despite being from Northern Ireland - because he has spent almost all his career as a player and manager in the English game.

His main rival now looks to be Pearce, who appears to have overtaken the likes of Sam Allardyce, Alan Curbishley and Steve McClaren because of his international playing experience - he won 78 England caps between 1987 and 2000 and would have the benefit of immediate acceptance by the England squad.

FA chief executive Brian Barwick has indicated that he wants to interview a number of candidates and both O’Neill - who is also the bookies’ favourite to be Newcastle’s next manager - and Pearce can expect to be on the shortlist.

Dutchman Guus Hiddink’s comments that he would have to do the job on a part-time basis for the first year alongside his duties for PSV Eindhoven have not endeared him to those making the decision, but he too should still be on the shortlist.

Pearce’s attitude to being linked with the job has also shifted over the last few days. He is still playing down his chances but has said he is flattered to be talked of as a candidate.

Former England internationals are also pushing his claims, with Peter Beardsley and Terry Butcher saying Pearce would be welcomed by the players. Beardsley said: "It’s about how the England players would react to the appointment and someone like Stuart has huge international experience, and he has worked under one of the very best in Brian Clough.

"It can work very well appointing an ex-international player even if he does not have a lot of managerial experience. Mark Hughes did exceptionally well for Wales, while Marco van Basten has had great success with Holland.

"In some ways it is a straightforward job - everyone knows who the best 11 England players are barring one or two and so it comes down to how the players respond to you. I’m sure either Stuart or Martin - whom I consider as good as English in terms of this appointment - would do a good job. It’s just a nightmare job choosing who is the best person for it and I’m glad I don’t have to make the decision."

Butcher said at the weekend that Pearce "would command instant respect" from the England players.

Ladbrokes’ odds on the next permanent England manager:

Martin O'Neill 6-5
SamAllardyce 7-2
Alan Curbishley 4-1
Stuart Pearce 6-1
Guus Hiddink 7-1
Bryan Robson 33-1
Steve McClaren 33-1
Steve Bruce 40-1
Jose Mourinho 50-1