Former Adelaide United defender Michael Valkanis is tipped to take over the role of football director at the club.

After Michael Petrillo resigned from the role on Wednesday, sources have already named Valkanis as his likely replacement.

The Reds are expected to cut back on staff before the end of the financial year to cope with the economic crisis and are under a budget review.

It was understood that the club may fall in the hands of Football Federation Australia after owner Nick Bianco contemplated handing it over but instead will downsize his investment by cutting costs.

Valkanis retired from the game last month and may now step straight into the role along with taking over as coach of the youth team.