The Everton manager Walter Smith has hinted that he could walk away from Merseyside when his contract expires in 18 months' time. He blamed incessant speculation about takeovers, buyouts and buy-ins which had done little to convince him he should seek to extend his working relationship with the club.

"Nothing here is based on a firm foundation," Smith said yesterday. "If it comes to the end of my contract and things are the same as they are at present then I really would have to look at things carefully."

Next Tuesday marks the first anniversary of Peter Johnson's resignation as the Everton chairman. Within 24 hours of Johnson announcing he wished to offload his 28 per cent shareholding, the club's vice-chairman Bill Kenwright declared his intention of seizing control.

And although Kenwright has spent the last year trying to put together a package to meet Johnson's financial demands, he has been unable to lodge a formal bid.

"The frustration isn't just with the circumstances on the pitch, it's to do with everything that has gone on here in the 18 months since I arrived," said Smith. "I feel frustrated that a club with our support is in this situation."

Everton's debts are believed to be in the region of £13.5 million and Smith has been forced to sell several of his more experienced players to help ease the overdraft. "At the end of last season we thought we were building up to a certain stage and changes were being made. But it has proved to be a wasted period," he said.

Johnson is demanding around £35 million for his portfolio which values Everton at £50 million.