Speculation was intensifying last night that talks between the FAI and Mick McCarthy will begin within the next 24 hours regarding his continuing position as manager of the Republic of Ireland football team.

With both sides now having made it clear that they believe the issue of a financial settlement will not prove an insurmuountable obstacle to reaching an agreement, and with McCarthy believed to be tiring of the continuing question mark that hangs over his future, it now looks more likely that a deal might be concluded by the end of the week.

Neither McCarthy nor any of the association's senior officers were contactable last night, but one source close to the association indicated that a deal paving the way for McCarthy's departure could well be done by Thursday.

The former Millwall manager is due in Dublin to promote his World Cup diaries and has previously said he would seek to review his situation with his employers in the wake of Ireland's disappointing results in their opening Euro 2002 qualifiers against Russia and Switzerland.

Speculation has also begun regarding a possible successor, should McCarthy and the FAI come to an agreement, with John Toshack thought to be a favoured candidate of some FAI officials. The former Welsh international has extensive managerial experience, particularly in Spain.

Former Republic of Ireland international David O'Leary, currently unemployed after his sacking by Leeds United in the summer, will also figure high on any list of possible successors.

Other possible candidates who have been mentioned include Luton manager Joe Kinnear - who has regularly stated it is his ambition to have the job - and former international and Tranmere manager John Aldridge.