BT Sport understands that caretaker manager Tim Sherwood could be on the verge of becoming Tottenham's next permanent boss after the Premier League side chose not to pursure their interest in former England manager Fabio Capello while another front-runner for the job, Ajax's Frank de Boer, has turned the club down.

Following Spurs' League Cup exit at the hands of West Ham on Wednesday night, Sherwood was uncertain whether he would be in charge for Sunday’s Premier League game at Southampton but BT Sport believes he will continue in the dug out alongside Les Ferdinand this weekend.

Capello, currently the Russian national manager, was installed as an early favourite to succeed former boss Andre Villas-Boas after the World Cup next summer due to his relationship with Spurs' technical director Franco Baldini who was his assistant with England. However, it is thought that Spurs have been put off by the accompanying  £7 million-a-year price tag.

Instead they are willing to give Sherwood his big chance, and much will depend on how Spurs perform at high riding Southampton.

Glenn Hoddle is on standby to take temporary control if needed, and Spurs are also considering a short-term move for Guus Hiddink but the Spurs board believe that Sherwood should be given his chance before considering the alternatives. Basel coach Murat Yakin has also been linked with the job with Sherwood confessing that “there are a lot of big names being linked to this job.”

One of those is De Boer but reports in Holland suggest he has snubbed Tottenham's advances and will honour his current contract with the Amsterdam-based club. That leaves Sherwood facing a battle to prove he is up to the task following the 2-1 home defeat to their London rivals.

"I've got to be in the frame, but it's not my decision, unfortunately," said the 44-year-old ex-Tottenham player.

"I'm up for a challenge. I always have been. I'm very opinionated."

Sherwood played for Spurs between 1999 and 2003. He joined the club's coaching staff in 2008 under then-manager Harry Redknapp and was working as technical co-ordinator when chairman Daniel Levy asked him to look after the first team following Villas-Boas's departure.

Sherwood has no managerial experience, but he is apopular figure at the club and not lacking in self confidence:  "I know a certain way I need to play.  I think I can manage men and deal with them and be honest with them.

"I think the chairman and the football club need to make the correct decision and find the manager who's best compatible to take this football club forward."