Former England and Liverpool defender Jamie Carragher likes the idea of having United States coach Jurgen Klinsmann as Roy Hodgson's replacement, ahead of compatriot Alan Shearer.

England are in the process of recruiting a new man at the helm after Hodgson's swift resignation following their round of 16 exit from Euro 2016 at the hands of Iceland.

The Three Lions scored from the penalty spot through Wayne Rooney but Iceland came storming back with goals from Ragnar Sigurdsson and Kolbeinn Sigthorsson to record a famous victory that sent England packing.

The English Football Association has not ruled out appointing another foreign manager to take charge of England, with a three-man panel already in place to make the selection.

And Carragher, who retired with 38 international caps for England, reckons Klinsmann is one of the better candidates to take over the England hot seat. The German guided the U.S. through a challenging group and into the round of 16 at the 2014 World Cup and recently led the Americans to the Copa America semifinal before losing 4-0 to Lionel Messi's Argentina,

Jurgen Klinsmann took United States to the Copa America semifinal where they lost to Argentina. Alex Goodlett/LatinContent/Getty Images

"My own view is that international football should be about the best in your country against the best of someone else's, so I had always favoured an Englishman but there can be no complaints if the FA look to a foreign coach," Carragher told the Daily Mail.

"With that in mind, I wouldn't knock the idea of appointing Jurgen Klinsmann, who has been to a World Cup semifinal with Germany, a Copa America semifinal with the United States and knows our game."

With Hodgson's exit, a couple of Englishmen have been mentioned as possible candidates including England U21 coach Gareth Southgate, Glenn Hoddle and Newcastle United legend Alan Shearer, who has already signaled his willingness to speak to the English FA.

Carragher, however, doubts Shearer is the right man for the job, citing his failure to keep Newcastle from being relegated in the 2008-09 Premier League season as a good example of the former England striker's abilities.

Former England striker Alan Shearer has put forward his interest in replacing Roy Hodgson. Ross Kinnaird Getty Images Sport

"That has not been the case, so if the FA look to cast their net further, there can't be complaints, even from Alan Shearer, who wasted no time throwing his hat into the ring after claiming Hodgson was 'tactically inept'," added the ex-Liverpool defender.

"Shearer's patriotism is admirable but there is more to being a successful manager than just patriotism and emotion. Shearer, after all, will remember how, after acting on emotion when Newcastle called him in 2009, he failed to stop the club he has supported all his life being relegated."

Another potential replacement that has been linked to the job is Frenchman Arsene Wenger, but with captain Wayne Rooney publicly backing the appointment of an Englishman for the job, it remains to be seen which direction the English FA are going to take.