Jack McConnell is expected today to announce he is quitting as Labour leader at Holyrood, and has a new role in education and Malawi.

Mr McConnell, who was Scotland's first minister from 2001 until the SNP won the largest number of seats in the Scottish parliamentary elections in May, will remain in the Scottish Parliament as MSP for Motherwell and Wishaw. He is expected to be appointed to the House of Lords later this year or early next.

Since Scottish Labour was beaten into second place at the polls, Mr McConnell has said little about his plans or his strategy for fighting back, and has struggled to adapt Labour for its new opposition role.

He faced pressure from his own group, with warnings he would face a challenge this autumn if he sought to stay on. The fallout from the election also featured criticism from Labour MSPs that he had failed to consult even his own inner circle. And the rise of Gordon Brown to Prime Minister has put even more distance between him and Downing Street.

Wendy Alexander, the finance and sustainable growth spokeswoman, is the front-runner to replace Mr McConnell. Although there are doubts about her people and communication skills, many believe she is the only credible candidate on offer.

Mr McConnell will tell his shadow cabinet colleagues of his plans at a meeting at Holyrood this morning, but few will be surprised. Last night, one senior member of his team told The Herald that the signs of an imminent departure had been there for a while.

At the end of July Mr McConnell told his constituency party that whatever they read or heard in the media he would remain their MSP, reflecting Labour's interests in avoiding a by-election when it is in disarray and the SNP is riding high. One constituency member said that while he did not spell out his intentions, it was obvious he would not stay on as leader of the Labour group at Holyrood.

Mr McConnell's departure will trigger the race for his succession, and as the Prime Minister considers a quick dash to the polls, there is pressure to make a choice quickly, with speculation about a special conference next month.

Ms Alexander, the recognised front-runner, has done most to prepare the ground.

One senior colleague said yesterday: "Who else is there? Wendy has many strengths and we shall have to make sure she has a strong team around her to compensate for her weaknesses."

The Prime Minister and Douglas Alexander, the International Development Secretary, Labour's election co-ordinator and Ms Alexander's brother, will throw their weight behind her .

The leadership machine has been organising for months to make sure she succeeds Mr McConnell. However, she will also have to show her independence of the Westminster leadership if she is to compete with the Nationalists, and she is thought to favour a look at additional devolved powers.

Other names mentioned as a possible Labour leader are Andy Kerr, the East Kilbride MSP and health spokesman, Cathy Jamieson, MSP for Carrick, Cumnock & Doon Valley and the group's Holyrood business manager, Margaret Curran, the justice spokeswoman and Glasgow Baillieston MSP, along with Iain Gray, a former enterprise minister newly returned as East Lothian MSP.

One possible leadership contender, who asked not be identified, admitted last night that while the powers-that-be appeared to back Ms Alexander, it was imperative that she and they acknowledged the need for a team effort.

"The next leader has to work with other people to do the things that need to be done," it was claimed. "We have to reach out to our activists and to local government, where many of our councillors need help and support.

"We have to get off the back foot and hold the Nationalists to account. They are doing everything we said they would do - pick fights with Westminster and make the arguments for Nationalism."

Nicol Stephen, the LibDem leader, last night paid tribute to the former first minister, for whom he had been deputy: "I worked closely with Jack over the last eight years. He is a hard working and dedicated individual. The foundations to his parliamentary career were set during his time as general secretary of the Labour Party."