It his first coaching appointment with a senior side, although he had previously coached in the youth teams at Stoke City. Under his guidance, the team won three, drew one and lost one of their five matches to finish as runners-up behind Fram. Steele was subsequently selected to manage the Iceland national team in its first ever international match against Denmark on 17 July 1946. Scottish coach Murdo McDougall, who had first moved to Iceland as Valur manager in 1937, was named as his assistant. Steele included several of his players from KR in the Iceland team, including Birgir Guðjónsson and Jón Örn Jónasson, but could not prevent the side losing 3–0 before a crowd of 8,000 spectators at the Melavöllur. Upon leaving Iceland on 17 August 1946, to return to England in time for the start of Stoke City's season, he spoke of how he had enjoyed his time in Iceland and stated his desire to return the following summer, although the move never materialised. Mansfield Town Steele assumed a player-manager role at Mansfield Town in 1949. He was prolific in front of goal, scoring 44 goals in 62 league and cup appearances – this scoring record made his job as manager much easier. The "Stags" finished eighth in the Third Division North in 1949–50. They then went on a 23-game unbeaten run, but could only end up finishing as the division's runners-up in 1950–51, seven points behind champions Rotherham United. Steele signed players such as defender Don Bradley, and wing-half's Oscar Fox and Sid Watson. Steele left Field Mill for Port Vale for a four-figure fee in December 1951, and Mansfield finished the 1951–52 season in sixth place under his successor George Jobey. Port Vale Replacing the unpopular Ivor Powell in December 1951, Steele was a popular choice as new player-manager. His team were bottom of the Third Division South table, however he did not make any new signings, and in fact he sold striker Walter Aveyard to Accrington Stanley for a four-figure fee. Steele turned around results using the players at his disposal, and Vale lost just four of their last twenty games of the season to finish a comfortable 13th. Vale were moved to the Third Division North in 1952–53, and Steele kept the playing squad as it was, deeming the players he inherited to have the potential to achieve promotion. Despite Ivor Powell coming back