Austin MacPhee (right) will carry out his duties from home

Hearts owner Ann Budge says she made a mistake by not replacing Craig Levein as manager in the summer.

Levein, who was also director of football, was sacked on 31 October but will continue to help with the academy and medical setup.

At the club's AGM, Budge said he and former assistant Austin MacPhee may not see out their deals, which end in May.

"One of the mistakes I did make was agreeing that Craig should take on both roles," Budge said.

"There were arguments put forward for it at the time and I agreed to that. I concede that I made some mistakes, I don't think it was blind faith."

Levein, 55, was sacked as the club's manager and director of football in October, with MacPhee taking temporary charge until the appointment of Daniel Stendel a fortnight ago.

One shareholder asked if the former Scotland manager is still around the club on a daily basis, with Budge responding that he stays away in the mornings while MacPhee, who will help with recruitment and video analysis, will carry out his work from home.

"I've made slight changes so there can be no suggestion that he [Levein] is interfering with the first team," Budge added.

"But the other responsibilities he had as director of football I don't consider I should lose his services there. So I just want him to finish off that wider brief.

"I don't think there is any chance that Craig will continue beyond the end of the season. Austin, that's different because he has to decide what he wants to do moving forward. It might well be that there is something he would want to do here."

No update in Stendel dispute

Stendel, who will take charge of his second match against Celtic on Wednesday, has told Budge he is not overly impressed by the current squad as they sit second bottom of the Scottish Premiership, above Hamilton Academical only on goal difference.

The 45-year-old German was formerly manager of Barnsley and the English Championship club have said they are due compensation from Hearts, which the Tynecastle club have disputed.

"He has, to my understanding, to reach a settlement for himself which has nothing to do with us. As far as we're concerned, we asked for evidence but they didn't provide it," Budge explained.

"One of Daniel's assistants, who's still employed by Barnsley, has got to sort his situation out. I can't influence that and certainly don't want to get in the middle of it."

The club is also in the process of appointing a sporting director, having received over 20 applications, but although they have started to speak to candidates, Budge says there is no rush to make a decision.

Having recorded an operating profit of £1.6m for 2018/19, Hearts are currently £400,000 down on its revenue target for this financial year, but have no contingency plans for relegation yet, though "the majority" of players' contracts do contain relegation clauses.