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John Toshack is willing to quit as Wales manager before the team next month's game against Bulgaria, BBC Sport reported.
The 61-year-old is thought to feel he has taken the side as far as he can after the 1-0 loss in Montenegro to open the 2012 Euro qualifying campaign.
Toshack, whose second period in charge of Wales began when he succeeded Mark Hughes in November 2004, has won 21 and lost 24 of his 53 games since then.
The former Real Madrid manager is not thought to be under any pressure to step down from Football Association of Wales chiefs, but he was seen in deep discussions with high-ranking officials after the disappointing defeat in Podgorica.
FAW vice-president Trefor Lloyd Hughes told BBC Wales that Toshack was extremely disappointed after Wales' loss in Montenegro and that further news could be expected this week.
"There's a lot of speculation, some of it false, some of it true," said Lloyd Hughes. "The FAW, I'm sure, will issue a statement clarifying the situation either later [Monday] or by midweek."
Immediately after the loss to Montenegro, former Wales internationals Iwan Roberts and Robbie Savage called for Toshack to go.
"Our optimism is gone in one game, I don't think there were any positives," Roberts told BBC Radio Wales' The Back Page programme.
"Toshack has taken the squad as far as he can. He's been with them since November [2004] and have we progressed? I'm not too sure.
"I would say his position is untenable if we lose to Bulgaria, we have to get six points from the next two games."
Former Wales midfielder Mickey Thomas saw the Bulgaria match as a watershed.
"I'm not sure it's right or helpful to call for the manager's head after one game," Thomas told BBC Wales.
"But if Bulgaria doesn't go well then the pressure mounts and maybe his time is up.
The Bulgarian clash against Wales is in Cardiff on October 8.
Bulgaria suffered a tragic 4:0 loss as guests from England in their first match from the qualifications for Euro 2012 on Saturday.
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