Hibernian side, but resigned in August citing personal problems and that he was too occupied with his job in the national team. However, in just a couple of weeks time he took over at FBK Kaunas and led the club to Lithuanian championship title and Lithuanian Cup victory. 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. After finishing second in the SPL and guiding to club to a Scottish Cup triumph, it was announced on 30 June 2006 that Ivanauskas had been appointed as Hearts' head coach on a permanent basis. In doing so he became the club's first foreign manager. On 23 October 2006, Ivanauskas was given two weeks leave by majority shareholder, Vladimir Romanov, citing health reasons – believed to be stress. He was replaced by Eduard Malofeev and returned as head coach on 27 November. On 20 March 2007, Ivanauskas left his position of head coach by mutual consent. He was replaced by Anatoly Korobochka and Stephen Frail who had served as sporting director and reserve coach respectively, during Ivanauskas' reign. In September 2007, Ivanauskas became manager of FC Carl Zeiss Jena of Germany's 2. Bundesliga. His stay at FC Carl Zeiss Jena was cut short when he was fired on 22 December 2007 due to lack of results. In July 2008, Ivanauskas made a return to football and agreed to coach FK Banga Gargždai in the Lithuanian second division and led the team to its first bronze medal finish in 14 years. The team also earned promotion to the A Lyga, Lithuanian top football division for the 2009 season, after three other clubs withdrew before the start of the season. In November 2008, Ivanauskas also became the interim coach of Lithuania's under-18 football team, and after leading the team to a surprise draw in a friendly against Germany, in February 2009 was subsequently appointed as head coach of Under-21 national football team and on 16 July