Scottish Football Association chief executive Gordon Smith revealed that McLeish submitted a written resignation on Tuesday afternoon.

Smith said: "We are very disappointed to lose Alex as our manager."

Scottish FA president George Peat said in a statement: "It is with regret that I can confirm that Alex McLeish has notified the Scottish FA that he has resigned from his position as national team coach with immediate effect.

"I am disappointed that Alex has chosen this course of action.

"He is an outstanding manager who has done a fantastic job with the national team.''

Chief executive Smith and president Peat had been involved in talks with McLeish during their trip to Durban for Sunday's 2010 World Cup qualifying draw, and hoped he would agree an improved new contract.

His deal was due to expire after the 2010 World Cup.

The former Rangers boss steered Scotland close to qualification for the Euro 2008 finals, with their hopes finally shattered by Italy's 2-1 win at Hampden 10 days ago.

However McLeish, on his arrival back in Britain, decided his future was not with the Scotland team.

The World Cup qualifiers begin next season and the lack of competitive games in the coming months may have been a factor in McLeish's decision to quit.

Peat said: "Everyone at the SFA and indeed Scotland fans around the world were looking forward to Alex leading us into the World Cup qualification campaign.

"This is why we chose to offer Alex an extended contract while we were in South Africa.

"Sadly, he has chosen not to take up this offer.

"A special meeting of the SFA board will take place tomorrow morning at 11am to discuss the current situation.''

Chief executive Smith was still waiting for the chance to speak to McLeish about the resignation.

"He's not said anything, he's sent a written resignation,'' Smith said.

"We were sitting down at this stage and had broached increasing his deal time-wise and financial-wise.

"He has been a terrific manager for Scotland and a great asset to the association.

"He's also been working in other aspects within the SFA, and he's a big loss.''

Wednesday's meeting of the SFA board had been called to discuss McLeish's future.

However Scotland's future without the 48-year-old will now rise to the top of the agenda.

"The meeting tomorrow has probably lost a bit of its impact,'' said Smith.

"I didn't think we'd be dealing with this today.

"It's one of those things. It's market forces these days, and the Premier League is where lots of guys want to be.''