He was seen as a frontrunner for the position, along with David O'Leary and Mick McCarthy.

And following news of Reid's departure Graham said: "I'm keen to speak to any club whose ambition matches my own."

But Graham's agent, Steve Kutner, has ended speculation that the 57-year-old could take over at the Stadium of Light.

"This is not the right opportunity for George at the moment," said Kutner.

Meanwhile, West Bromwich Albion chairman Jeremy Peace is confident Baggies boss Gary Megson will not leave his club to take over at the Stadium of Light.

Megson, who guided the Baggies to the Premiership, has developed a reputation as manager who can succeed on a tight budget.

And he is understood to be on the Black Cats shortlist - but Peace is adamant Megson will be staying at the Hawthorns.

"I know for a fact that Gary is happy with what we have achieved at this club to date and he is excited about the future," Peace told the Birmingham Evening Mail newspaper.

"Gary is an exciting young manager and we are lucky to have him at West Brom.

"It is only natural that a club like Sunderland would be keen on a coach who has achieved so much in such a short space of time.

"But I am completely confident that Gary will remain at West Brom."

Sunderland want to have a new manager in place by the time the club play West Ham on 19 October.