Hay spent a spell in charge at Livingston in 2004

Former Livingston manager Davie Hay is in line for a return to the First Division club.

Livi owner Pearse Flynn is close to agreeing a takeover deal with an Italian consortium who want to take over at Almondvale.

If the deal is agreed, they would appoint Hay to oversee their �1m investment in Livingston.

Meanwhile, the club said it would not pursue a deal which could have seen dog racing being held at Almondvale.

Hay, who has been out of management since leaving Dunfermline three years ago, had a short spell as Livi boss before leaving in June 2004.

The Eddie Ramsay deal is dead - it was all talk and rhetoric Livingston owner Pearse Flynn

He also enjoyed managerial spells at St Mirren, Motherwell, Celtic and Dunfermline.

Flynn has held talks with Eddie Ramsay over the prospect of hosting dog racing at the stadium, but has decided against the move.

"The Eddie Ramsay deal is dead - it was all talk and rhetoric," said Flynn.

"We can do without the distraction at this time. There is no substance to it, the deal is dead."

The Italian group are believed to have a budget of about �1m to spend on players in a drive to gain promotion to the SPL.

The consortium would use Livingston in a feeder club role where Italian players and others would be showcased.

Flynn also confirmed to BBC Sport that he was examining the possibility of buying the stadium from the council or moving to new stadium within Livingston.

The First Division outfit are currently in seventh spot in the table, with 29 points from 27 games.