Mourinho will reject England to take over at Real Madrid or Barcelona

The former Chelsea boss has told close friends that he is not interested in returning to England to coach the national team because he wants to manage one of the top La Liga clubs.

Scroll down for more

Mourinho, it is understood, believes there is a distinct possibility that Real Madrid will part with their coach Bernd Schuster at some point this season, leaving the way free for him to take over.

A close friend said: "A national team job does not appeal to Jose at the moment, he wants to stay in club football and is waiting to see what happens in Spain."

Mourinho, despite his problems with Barcelona when he was at Chelsea, has also not given up hope of returning to the Nou Camp to replace Frank Rijkaard.

The Portuguese is aware that he is many fans' choice to succeed Steve McClaren, but is put off by the likely intrusion into his private and family life.

Another early front-runner, Aston Villa manager Martin O'Neill, is also expected to publicly rule himself out of the running but privately is understood to be in a dilemma over the job. The Irishman is agonising over a conflict of interest between club and country.

Villa owner Randy Lerner seems to have left the door firmly open on an approach from the FA by saying he would not stand in his manager's way but O'Neill himself feels he owes a loyalty, both to the club which employed him and the players in his charge.

O'Neill feels that he is in the middle of a steady rebuilding plan at Villa Park and would feel uncomfortable about leaving at this time.

With O'Neill's position uncertain, Football Association chief executive Brian Barwick will have to look at alternative candidates.

Former Real Madrid coach Fabio Capello is another favourite with the bookmakers, having already declared an interest, while ex- Germany boss Jurgen Klinsmann is also open to persuasion.

A lively outside bet could be Rafael Benitez, who is reported to be unsettled at Liverpool and is yet to commit his long-term future to the club.

As revealed yesterday, Alan Shearer has emerged as the strongest English candidate.

His cause was today backed by fellow Match of the Day pundit Alan Hansen who said: "There are very, very few English candidates, though Alan Shearer's is a name that is being increasingly mentioned.

"If the FA could bring in a quality set-up around him, it could make for an interesting appointment.

"Shearer has a lot of the attributes needed to galvanise an England dressing room and beyond.

"The players and the country would be right behind him; he knows the game, he has performed at the highest level and, with regard to the media, he commands instant respect.

"If the FA can find that support staff — and there are no serious matches until next autumn — then Shearer would be an appointment that would be young, fresh and optimistic.

"And right now the English game needs a new beginning."

Shearer admitted he was shocked to be linked with the England job. He said: "I am surprised as anyone to see my name up there."

The 37-year-old, the bookies' fourth favourite to succeed Steve McClaren, went on: "I think there are many more candidates above me with a lot more experience than I have.

"I've taken my coaching badges and my A and B licences, and management does interest me at some stage. But when that is I don't know. Right now I'm happy with what I am doing as a pundit for the BBC. It's certainly a great job for someone.

"I believe there are some very good players in that England squad. It's just about getting the best out of them.

"In Euro 96, we nearly got there. In France 98 we were a decent side who were unlucky to lose to Argentina. Euro 2000 was poor, and since then it has not been good enough."