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John Collins has resigned as Hibernian manager after saying that he has taken the Edinburgh club as far as he can with the resources available.

“I leave with the CIS Cup in the trophy cabinet, a fine set of young players, a great new training ground,” Collins said. “During my time as manager we have brought in over £8.8 million [in transfer fees] and paid out £360,000 in compensation [on new players]. My reasons for resigning are that I feel I have taken the club under the current resources available as far as I can.”

The former Scotland midfielder was appointed on October 31, 2006, and led Hibernian to victory in the CIS Insurance Cup final in March. Collins has sold several key players sold during his spell in charge, including Scott Brown, Kevin Thomson, Steven Whittaker and Chris Killen.

Despite having to rebuild his squad on a small budget, Hibernian started this season strongly and are currently fifth in the Clydesdale Bank Premier League.

Collins, 39, has been linked with the Scotland job that became vacant when Alex McLeish resigned to join Birmingham City last month. However, a Scottish Football Association spokesman said his resignation from Hibernian was entirely unconnected to the national team post.

Only yesterday, Collins joined Rod Petrie, the club chairman, and Sir Tom Farmer, the club owner, at the opening of Hibernian’s new £4.9 million training complex. He stressed at the time that his contract, which was due to run until the end of next season, meant any talk of him becoming Scotland manager was pure speculation.

Collins had a successful playing career which began with Hibernian and took him to Celtic, Monaco, Everton and Fulham. He won 58 Scotland caps, scoring 12 goals for his country, and the Hibernian job was his first in management. He was also linked with a move to Queens Park Rangers earlier this season.