REPUBLIC of Ireland manager Mick McCarthy was emerging as favourite last night to take over at Sunderland in a potential Green Dream Team with club veteran Niall Quinn.

The Republic of Ireland boss, who has worked with Quinn and several other Sunderland players at international level, is rated a front-runner to succeed sacked Peter Reid as manager at the Stadium of Light.

Despite his apparent denials at yesterday's press-call prior to the Republic's Euro 2004 qualifier on Saturday against Switzerland in Dublin, McCarthy is believed to have edged ahead of David O'Leary in the race for the Sunderland hot-seat.

Another possible contender, former Arsenal, Leeds and Tottenham boss George Graham, yesterday ruled himself out.

Asked about being linked to the Sunderland post, McCarthy said: "It's very flattering, but at the moment my concentration and focus is on the Switzerland game."

Sunderland hope to appoint a successor before the home game with West Ham, on October 19.

Player-coach Quinn took charge of the first team at Sunderland's Whitburn training ground yesterday, along with reserve coach Ricky Sbragia.

Quinn spoke of the players' "immense sadness". He said: "The atmosphere has been very sombre today and it makes it worse because us players feel that we are responsible."

Meanwhile, reports that Reid left Sunderland with a £5m pay-off are believed to be exaggerated.

An automatic financial settlement in his contract, triggered by his sacking, is believed to leave him with severance pay of £1m-plus. This is some way short of his reported £1.5m annual salary.

But Reid is believed to have seen his 428,000 shareholding in Sunderland, at its peak worth around £3m, diminish to about £640,000 based on yesterday's all-time low closing figure of 147.5p.

Reid, who has a home in Yarm, was reported to be in his native North-West yesterday.

Bolton boss Sam Allardyce, who spoke to Reid after Monday's departure from Sunderland, said he believed his old friend was "in shock" at the sacking.

Last night, Ladbrokes reported that a £3 bet had been placed at 66-1 on Newcastle's Alan Shearer replacing Reid as Sunderland boss.

Read more about Sunderland here.