John Collins has been installed as the immediate favourite to take charge at Fulham after the dismissal of Lawrie Sanchez this morning.

Sanchez, the former Northern Ireland manager, has paid the price for the club’s poor start in the Barclays Premier League, fuelling speculation that Collins is poised to replace him. Collins, the former Fulham and Everton midfielder, resigned as Hibernian manager yesterday.

A club statement read: “The club is confident that it will find the right replacement to increase its chances of remaining in the Premier League, which is of vital importance. The club would like to thank Lawrie for helping the club through a difficult period at the end of last season, and thank him for his service over the last eight months.”

Ray Lewington and Billy McKinlay have been placed in caretaker charge for this weekend’s home match against Wigan Athletic, their relegation rivals, but the search for a long-term replacement will now begin.

After Collins announced his resignation after little more than a year in charge at Easter Road he was immediately linked with Fulham and the vacant post with the Scotland team. The former Scotland player, however, has played down the link with the London club. “There has been no contact from Fulham,” he said yesterday. “That would be disrespectful to the manager, who is doing a tough job just now.”

Sanchez faces an uncertain future in management. The former Wimbledon midfield player and FA Cup-winner restored his reputation with Northern Ireland, whom he guided to a famous win over England, after a disappointing end to his spell as Wycombe Wanderers manager in 2003.

Martin Jol, the former Tottenham manager, and Steve McClaren, the former England head coach, are also among the early front-runners to succeed Sanchez.