Steve McClaren has been offered a possible route back into English football after Nottingham Forest identified him as their top target to replace Billy Davies.

The former England and Middlesbrough manager has been working overseas since his spell in charge of the national team ended in failure and ridicule.

He looks set to return though, with Forest confirming they have opened talks with 50-year-old McClaren after sacking Davies, who had a year remaining on a three-and-a-half-year contract.

A statement read: ‘‘Nottingham Forest have announced this afternoon that they have terminated the contract of manager Billy Davies with immediate effect.

‘‘They have also revealed that they are now talking to Steve McClaren about The City Ground vacancy.''

Croatia's 3-2 victory on a wet night at Wembley on November 21 2007 scuppered England's hopes of qualifying for Euro 2008, and McClaren was sacked the following day.

He headed abroad for his next job and was a huge success with FC Twente in Holland, guiding them to a second-placed finish in the Dutch Eredivisie in 2009 before leading the team to the title the following year.

He departed to join German side Wolfsburg in May 2010 but struggled in the Bundesliga and was sacked in February.

Former Preston and Derby boss Davies saw his Forest side slide to a 3-1 aggregate defeat to Swansea in the semi-finals of the npower Championship play-offs last month, having also lost to Blackpool at the same stage 12 months previously.

McClaren was recently linked with the vacancy created at Aston Villa by Gerard Houllier's departure, and was also tipped to be appointed at West Ham before Sam Allardyce was handed that job.

Alex McLeish quit Birmingham by email and was immediately tipped to take over at city rivals Aston Villa.

The former Rangers and Scotland boss confirmed his resignation in a note sent to acting chairman Peter Pannu.