John Collins quit as Hibernian manager yesterday, blaming the Edinburgh club for failing to match his ambition. The man who won a trophy and contributed to record Easter Road financial results revealed that he felt as if he was “treading water” once he learnt he would have no money to spend in the January transfer window.

Collins walked away from Hibernian after just 14 months in charge, fuelling speculation that he could become the new Scotland manager. However, highly-placed sources within the SFA told The Times last night that Collins is not seen as a contender to replace Alex McLeish.

The 39-year-old will have no shortage of offers, even if the tenure of his first managerial job was short. Fulham, where Collins spent three years as a player, have been linked with the former Scotland midfield player. Hibernian refused permission for Queen’s Park Rangers to speak with Collins in October and another Coca-Cola Championship side inquired about him recently.

The exit of most managers usually occurs when their stock has dipped, but Hibernian are fifth in the Clydesdale Bank Premier League – they were briefly top on October 1, after winning at Rangers – and Collins kept the fans happy by winning the first silverware in 16 years (the CIS Insurance Cup) and kept the board happy with his role in the £7 million profits announced three months ago.

The major share of that came from the £8.8 million Hibernian have recouped in player sales in 2007. That figure could exceed £10 million if David Murphy, the left-back, is sold in January, but Collins learnt from Rod Petrie, the chairman, that he would have no cash to spend next month.

That prompted Collins’ shock decision to leave. It came just 24 hours after he spoke in glowing terms about the future of the club at the opening of Hibernian’s new £4.2 million training centre at East Mains.

“It could have been avoided but I am not blaming anyone,” Collins said yesterday. “The board of directors do what they think is right for the football club and over the years, they have done a terrific job. It’s a decision I have been thinking about for a period of time now. Everyone knows I am ambitious, I like to challenge for things; I don’t like treading water. At this moment in time I feel like I have taken the team as far as I could. It’s a tough job in football management and it’s tough when you sell your top players.” Collins saw a host of key players leave, including Scott Brown, Kevin Thomson, Steven Whittaker, Ivan Sproule and Chris Killen. He spent just £360,000 in recruiting replacements. “The club had no choice to sell the players - the money that they were offered,” Collins added. “Money is always a big talking point but there are other aspects to the job.

“I asked the question if I was going to get all the money in January if someone moved out the door, and I would not have been getting all the funds. Every manager is always going to want a little bit more and I am not going to tell a lie, I most definitely think they could have have given a little more back into the players. It’s always disappointing when something comes to an end. There is always that sadness, there are tears in my eyes and I’m holding them back. Hopefully, the club will go on from strength to strength. I have given everything and there are young players there that are only going to get better.

“I feel that I leave with the CIS Cup in the trophy cabinet, a fine set of young players, a great new training ground. During my time as manager we have brought in over £8.8million and paid out £360,000.

“There are lots of great memories, but I felt that I couldn’t take the club any further forward with the resources I had. Every football club has a budget and Hibernian are no different I just felt that maybe it was the time to invest a little bit more in the team to take us forward but I respect the board of directors, they’ve done a fine job.”

Petrie said he was stunned by Collins’s decision. “It came as a surprise, and we made determined efforts to dissuade him and to work with him through the difficulties that are concerning him,” the chairman said. “We thank him for his work at the club.”

Now Petrie and his board will have to find a new manager for the third time in 3½ years. John Hughes, the Falkirk manager, has been touted as a contender but his relationship with Petrie from his time at Easter Road as a player, is thought to preclude any return to Easter Road.