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Heart of Midlothian FC today announces that it has started the search for a new manager after Paulo Sergio did not agree to the terms proposed to him by the club.

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The club had been hopeful recent negotiations with Sergio would have a successful conclusion but he has opted not to extend his stay at Tynecastle.

The club has now commenced the process of putting a new coaching team in place which is capable of building on the success of the William Hill Scottish Cup victory over Hibs.

A Hearts spokesperson said: "Paulo Sergio declined the offer of a new contract. We wanted to keep Paulo Sergio at Hearts and made what we believed was our best offer in the circumstances. The same terms will be available to other candidates willing to lead Hearts to new victories.

"We would like to put on record our appreciation of all his efforts, and those of Alberto Cabral and Sergio Cruz, in bringing the Scottish Cup back to Tynecastle.

"The search is already underway to find a new manager and we hope to make an announcement as soon as possible."

First-team coach Gary Locke remains at the club and will be part of the new coaching set-up.

Paulo Sergio said: "I deeply regret I will not continue my work at Hearts.

"I appreciate the road the club is now going down and respect what our board is doing. But I cannot accept the offer the club has made me.

"I want to say many thanks to everybody who worked with us, including our board, and special thanks to our supporters.

"I wish the very best to this great football club and I am now just one more Hearts supporter.

"I would also like to say thank you to all the players, who will be friends for life.

"And as for my future? Only God knows."

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On HeartsTV today, don't miss all the exclusive behind-the-scenes footage from cup final day at Hampden and the memorable open-top bus parade.

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