Wolves turn to Smith

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Smith is understood to have held talks with Wolves owner Steve Morgan and chief executive Jez Moxey about taking the post until the end of the season.

The 63-year-old has been out of football since ending his second spell in charge of Rangers at the end of last season.

It is reported Smith turned down the Wolves job on a full-time basis but is happy to assume initial command for the next 13 games in the bid to keep them in the Barclays Premier League.

Smith has previous experience of managing in the Barclays Premier League during four years at Everton and was briefly Sir Alex Ferguson's assistant at Manchester United at the end of the 2003-04 season.

He was also manager of Scotland for two years before returning to Ibrox in 2007 for the second time when he led the Glasgow club to three successive titles and the 2008 UEFA Cup final.

Several bookmakers have now made Smith the clear favourite to take over from McCarthy who was sacked 11 days ago.

Wolves have endured a fruitless search in the past few days with Alan Curbishley, Reading's Brian McDermott and Brighton's Gus Poyet all rejecting their interest.

Former Sunderland boss Steve Bruce appeared to be the favourite after being interviewed last week.

But Smith has now moved into pole position and Wolves are hopeful he could even be in place for Saturday's clash at Newcastle.