Former Scotland boss Craig Levein is to return to Hearts as part of a shake-up being overseen by new backer Ann Budge that has seen manager Gary Locke sacked.

Levein and Robbie Neilson are to head a new management set-up after Locke and assistant Billy Brown were both shown the door at Tynecastle on Monday.

Edinburgh businesswoman Budge is providing the backing for the Foundation of Hearts (FoH) fans group and on Friday she completed a 2.5 million ($4.2 million, 3.1 million euros) deal for the Scottish capital club, which will take them out of administration.

The FoH now plans to gradually buy the club from Budge over the next five years.

Hearts were docked 15 points for going into administration at the start of the Scottish Premiership season and were relegated to the second-tier Championship last month.

Budge, dubbed 'The Queen of Hearts' by the Scottish press, said the 49-year-old Levein, a former Hearts player and manager, had been appointed director of football, with Neilson promoted to first-team coach.

Locke, who replaced the sacked John McGlynn in February 2013, had an all but impossible job in his first full season in charge of the Jambos after they went into administration.

As well as the crippling 15-point penalty, Hearts were also subject to transfer restrictions and Locke ended up with a situation where his first team had only two outfield players aged over 21.

Yet despite everything, Hearts won more league matches than second-bottom Edinburgh rivals Hibernian and finished the season with just one defeat in eight games.

Had it not been for the points penalty, Hearts would still be in Scotland's top flight but Budge said she needed someone of the experience of Levein, manager of Scotland's national side from 2009-12, on board to help secure the club's long-term future.

"We know it may be an unpopular decision with some of you, but the board has decided that we cannot offer Gary Locke a new contract as manager, at the end of his current contract," Budge said.

"Please believe me when I say this has been an enormously difficult decision to make," the 66-year-old, who made her name in business as an information technology specialist, insisted.

"We all know the pressures that Gary and his assistant, Billy Brown, have worked under over the last year.

"They were set an almost impossible task, which they handled with dignity and determination. For that, we are all hugely grateful to both of them.

Budge added: "Craig Levein will join the club with immediate effect and will assume total responsibility for everything to do with the playing side of the business.

"He will be responsible for putting in place an end-to-end strategy for how we are going to implement a youth-driven playing policy within the club.

"With such a strong director of football on board, we feel we have to spend our limited resources on strengthening and building the coaching side of the business, rather than having a first-team manager."