Gareth Southgate steps down as England manager as clear favourite to replace him emerges

Gareth Southgate has resigned from his role as England manager in the wake of their Euro 2024 final defeat to Spain.

England reached their second consecutive European Championship final under Southgate but once again failed at the final hurdle, losing 2-1 in Berlin on Sunday.

Nico Williams put Spain ahead before second-half substitute Cole Palmer equalised for the Three Lions.

But a late goal from Mikel Oyarzabal sealed victory for Spain, who claimed a record fourth Euros title.

Speaking after the match, Southgate refused to make an immediate decision on his future.

But he has now confirmed he will step down from his role after eight years in charge.

"As a proud Englishman, it has been the honour of my life to play for England and to manage England. It has meant everything to me, and I have given it my all," Southgate said in an official statement released by the FA.

"But it's time for change, and for a new chapter. Sunday's final in Berlin against Spain was my final game as England manager."

Former England U21 boss Southgate took charge of the national side in 2016 following the sacking of Sam Allardyce.

He led the Three Lions to the semi-finals of the 2018 World Cup before losing the Euro 2020 final against Italy at Wembley.

A quarter-final exit to France at the 2022 World Cup would follow before last weekend's heartbreak against Spain.

"I joined the FA in 2011, determined to improve English football. In that time, including eight years as England men's manager, I have been supported by some brilliant people who have my heartfelt thanks," added Southgate.

"I could not have had anyone better alongside me than Steve Holland. He is one of the most talented coaches of his generation, and has been immense.

"I have had the privilege of leading a large group of players in 102 games. Every one of them has been proud to wear the three lions on their shirts, and they have been a credit to their country in so many ways.

Gareth Southgate has stepped down as England manager (Image: Getty)

"The squad we took to Germany is full of exciting young talent and they can win the trophy we all dream of. I am so proud of them, and I hope we get behind the players and the team at St. George's Park and the FA who strive every day to improve English football, and understand the power football has to drive positive change.

"My special thanks go to the backroom staff who have provided the players and me with unstinting support over the last eight years. Their hard work and commitment inspired me every day, and I am so grateful to them – the brilliant 'team behind the team'.

"We have the best fans in the world, and their support has meant the world to me. I'm an England fan and I always will be.

"I look forward to watching and celebrating as the players go on to create more special memories and to connect and inspire the nation as we know they can. Thank you, England – for everything."

Former Chelsea manager Graham Potter is the clear favourite with the bookmakers to replace Southgate as manager.

Sky Bet has him priced at 6/5 to be appointed as the next manager of the national side, with England U21 boss Lee Carsley (3/1) and Newcastle's Eddie Howe (5/1) next on the list.

All three managers are reportedly on a seven-man shortlist drawn up by the FA for the vacant role, which also includes Mauricio Pochettino, Thomas Tuchel, Steven Gerrard and Frank Lampard.