Gareth Southgate has emerged as the early favourite with the bookmakers to take charge of the England Under-21s side.

The Football Association confirmed this afternoon that Stuart Pearce's contract will not be renewed following the team's early exit from the recent European Under-21 Championship.

Sky Bet's Chris Spicer told Sky Sports News: "The decision not to renew Pearce's contract is no surprise to our punters particularly after England's woeful showing in the European Under-21 Championships.

"Gareth Southgate heads the market to replace Pearce but there are lots of other interesting candidates including the likes of Glenn Hoddle and Steve McClaren in the running."

Southgate, who is currently the head of elite development at the FA, has not managed a side since being sacked from the Middlesbrough job in 2009.

Pearce had been in charge of the Under-21s since 2007.