Former Reading boss Brendan Rodgers is being linked with MK Dons.
Manchester United legend Paul Ince stepped down after telling chairman Peter Winkleman that he could not take the club forward under new budget restrictions.
He said: "Having discussed with the chairman the club's plans for next season I don't feel it will be possible to take the team forward as I would have liked due to the budget cut backs he will have to make throughout the club."
John Gorman and Glenn Hoddle had both been linked with replacing Ince but former Chelsea coach Rodgers, 37, is favourite.