New Zealander Robbie Deans has been appointed Wallabies coach until the end of the 2011 season, the Australian Rugby Union announced today.

The ARU said that after a thorough selection process, involving interviews with six quality candidates, the board resolved that Deans was "the best person for the job''.

"Robbie comes with a superb record and I am delighted to announce he will be joining the ARU,'' ARU chairman Peter McGrath said.

"The ARU board presented the selection panel with a brief to find the most outstanding candidate.

"We as a board consider this appointment satisfies that objective.

"The Australian public would expect nothing less from us and we see this as a new start for Australian rugby.

"In terms of our playing ranks, we are on the doorstep of generational change.

"We believe Robbie Deans is the man to move us into that new era.

"He has created history today by becoming the first non-Australian to coach the Wallabies.

"We trust there are further historic achievements awaiting him and the Wallabies over the next four years on the road to the 2011 World Cup.''

ARU deputy chief executive Matt Carroll said the ARU management team was looking forward to working with the new Wallabies coach.

"Robbie will have a major contribution to make to Australian rugby,'' he said.

"That will include a close connection with Super 14 coaches, community rugby and the ARU management team.''

This appointment sets up the intriguing prospect of Deans going head to head with Graham Henry for the Bledisloe Cup in a contest that will have all sorts of repercussions.

Deans recently lost out in a contentious battle with Henry for the All Blacks position, after the four-time Super 14 winning coach had put the Wallabies position on the back burner to pursue his ambition of becoming New Zealand coach.

However, the Australians showed how much they valued the 48-year-old Crusaders coach by allowing him to make a late application for the Wallabies job after his All Black ambitions were thwarted.

He was interviewed in Brisbane on Tuesday, and the media have speculated he was to be offered an annual package of closer to $1 million a year to take up the job.

First foreigner to coach Wallabies

The appointment is not without controversy, with the hugely successful Crusaders coach becoming the first foreigner to take charge of the Wallabies. Conjecture that he would be given the job after it was made clear he was the No.1 choice of chief executive John O'Neill divided Australia's rugby community.

But O'Neill has had his sights on Deans for some time now, and conveniently, some serious neck problems that left the Australian rugby boss bedridden allowed them to stall the appointment process.

Deans is currently in Christchurch, where he is taking the Crusaders through pre-season preparations. He is likely to to be summoned to Sydney tomorrow to finalise details and undertake media obligations.

It is not known yet whether the New Zealand Rugby Union will allow Deans to complete his obligations with the Crusaders in next year's Super 14, though it is understood the ARU are happy for him to do so.

With no ready-made replacement on hand in Christchurch, it could be that the NZRU bites the bullet and allows Deans to have his farewell season with the Crusaders before heading to Australia.

The unsuccessful candidates for the Australian job were David Nucifora of the Blues, Waratahs coach Ewen McKenzie, broadcaster Alan Jones, Laurie Fisher of the Brumbies and Wallabies assistant coach John Muggleton.

with AAP