In summer 2005, after a run of poor results he resigned from FBK Kaunas. It was rumoured that he might take over Scottish team Heart of Midlothian, a club with a Lithuanian-based owner and several Lithuanian players. Although these rumors persisted even after the sacking of managers John Robertson and George Burley, the club subsequently appointed Graham Rix as head coach. However, when in March 2006 Rix was also sacked, Ivanauskas was promoted to the position of interim head first team coach until the end of the season.