The campaign had also seen him linked with the international positions of South Korea and his previous post as Republic of Ireland manager.
Giovanni Trapattoni, the stubborn Ireland manager, long ago ran out of olive branches to extend.
In January 2006 Kerr was replaced as Ireland manager by Steve Staunton.
He became Northern Ireland manager a year after his retirement as a footballer in 1961, giving George Best his first start.
He was Derry's first League of Ireland manager, although his spell at the club, which began in 1985, did not last a full season.
Republic of Ireland manager agrees to new contract extension which will run until the 2014 World Cup.
Republic of Ireland manager allays fears over his future by describing talks over a new contract as a "formality".
At the end of the season, Sanchez was rewarded for his efforts with a three-year contract, which necessitated his resignation as Northern Ireland manager.
In 1980 he was re-appointed as Northern Ireland manager, his final position, and a post he would hold for the next thirteen years.
He was part of the FAI's three man selection committee in helping to select the new Ireland manager.