Pearce was dismissed as Manchester City manager on 14 May 2007, before the 2007 European Championships, but on 19 July 2007 he was named full-time U21s coach. He remained in the post until June 2013, when it was announced that his contract would not be renewed. On 31 July, the FA announced that England senior manager Roy Hodgson would take charge of an England U21 friendly match against Scotland at Bramall Lane, the match ended in a 6–0 win for Hodgson's side. Former England international Gareth Southgate was made manager of the under-21 team on 22 August.