Jim Smith's status as soccer's longest-serving manager could be preserved even though he was sacked by Derby County yesterday.

There was immediate speculation that the 60-year-old, who has spent 30 years in management, could fill the vacancy at bottom-of-the-table Leicester City, who are looking for a manager until the end of the season. With Harry Redknapp out of the reckoning and George Graham embroiled in a compensation case with Tottenham, candidates to replace Peter Taylor are thin on the ground.

Whether City fans would tolerate the appointment of someone discarded by their near neighbours is open to question. But Smith is keen on staying in the game and will be seen by many as hard done by after keeping Derby in the Premiership for five seasons.

Smith, who becomes the Premiership's second managerial casualty of the season, is replaced by his assistant Colin Todd, whose first game will be tomorrow's League Cup third-round tie at Fulham.

Todd faces a stiff challenge. Derby are second bottom of the Premiership with debts of £20m sterling and their bank pressing for a reduction in an estimated £10m overdraft.

It was generally understood that Todd, one of Derby's best ever players, would take over at the end of the season. But only one win in the first seven league games has prompted the chairman Lionel Pickering to take action.

Smith was offered the job of director of football, but after discovering he would have no input into team affairs, turned it down.

"There was a lot of talk about me retiring at the end of the season," said Smith, whose first job was with Boston United in 1970.

"The fact was my contract came to an end then but I was hoping we'd do well enough for me to get another. I'll still be involved in football.

"It is with great regret I have left my position as manager of Derby. This is a really sad day for me."

Said Pickering: "We have had a poor start. I like Jim and got on well with him. We will still have a pint together. It was amicable. But look at the table. We have to put the club ahead of personal friendship. It is only fair to give Colin 31 games to put things right."

Smith's six years at Derby was his longest in charge of any club, a list which includes Colchester, Blackburn, Birmingham, Oxford, QPR, Newcastle and Portsmouth.

He won promotion to the Premiership in his first season at Derby but after some impressively high finishes, has seen the side struggle in the past two seasons as he wheeled and dealed with little money. In the summer he was forced to sell Rory Delap to Southampton for £4m.

Todd's previous managerial stint saw Bolton yo-yo between the Premiership and First Division. But he was predictably bullish about the prospects of saving Derby.

"When I came into the football club last season we were in a worse position than we are now and we got out of it," he said.

"It's well documented that there aren't any funds available. It's up to me to wheel and deal. It is a difficult situation but it's a challenge."

According to Pickering, who turned down an offer of £6m for Seth Johnson last week, "There's been pressure from the bank for two years and that pressure was to get rid of fringe players. We are approaching a deadline and if we get the right money, we'll sell. I think they are getting impatient."

Derby have confirmed that Stefano Eranio has already left by mutual consent. And Pickering, who has come in for criticism despite pumping £24m of his own money into the club, says he is ready to leave if that is what the fans want.

"If they can get someone in who's 100 per cent for Derby, who's not just an investor, I'll go," he said.