The race to succeed Sven-Goran Eriksson as the best-paid national coach in the world began today after confirmation the Swede will leave his England job after the World Cup.

Eriksson's five-year reign as England head coach will end abruptly once the World Cup is over after he was forced to accept a pay-off from the Football Association last night.

The weekend's fresh 'fake sheikh' revelations proved the final straw and led FA chiefs to decide they wanted Eriksson to accept that his contract will end in July - two years before the 2008 expiry date.

A compensation deal has been hammered out between Eriksson and FA chief executive Brian Barwick, which it is understood will see the Swede being paid off with around a third of the £9million he would have earned from two years' salary.

The process of finding a successor will begin almost immediately but the organisation's leaders will not be hurried into making a decision. The first decision is whether they want an Englishman in charge or whether they should pick another foreigner with proven international experience.

Howard Wilkinson, the former FA technical director who as England caretaker manager was Eriksson's predecessor, said: "My point of view as chairman of the League Managers' Association is we would hope that English contenders for the position have got more than a head start."

Eriksson said that he intended to go out on a high.

He said: "I am happy that we have reached this agreement and can now continue our preparations for the World Cup.

"I know that I have the full support of the players and the FA and it is important to stress to everyone just how committed I am to achieving success this summer.

"I care passionately about this job and I want everyone to know that. I have always enjoyed the incredible support of the fans and I know how important they will be to us in Germany.

"This summer is the culmination of everything we have been working towards over the last five years. Let's go and win the World Cup."

Barwick added that it was vital to end the speculation surrounding Eriksson's future.

He said: "The FA and Sven felt it was important to clarify his future. This is for the benefit of everyone connected with English football, especially the fans."