Newport Gwent Dragons have emerged as the front runner to sign Nick Evans now the All Blacks' deal with the Leicester Tigers has fallen through.

Sunday News can reveal:

Leicester coach Marcelo Loffreda will sign Juan Martin Hernandez instead of Evans;

The Dragons have stepped up their interest in Evans;

Tom Willis is likely to be heading to the Dragons;

Leicester want Highlanders captain Craig Newby.

Sunday News understands the Dragons, who have struggled this season, are going all out to sign Evans and Chiefs hooker Willis.

Evans has lost out to World Cup bronze medallist Hernandez for a lucrative contract next season with Leicester.

The All Black first-five was in the last stages of agreeing a deal with the English Premiership club when Marcelo Loffreda, the former Argentina coach and head coach at Leicester, jumped at the chance of signing his former charge from Stade Francais.

Evans' deal with the East Midlands club was thought to be worth about $750,000 a season.

While the Dragons are leading the race, they are not alone.

Harlequins remain interested but can't match the money Leicester and the Dragons can offer while Ulster, a less attractive option, remain in the hunt and are believed to be offering $250,000 a season more than the London club.

The aborted deal will also have ramifications for Craig Newby who was also considering a move to Leicester.

The club had flown his wife Sally over a few weeks ago to visit the English city and she had apparently given it her seal of approval. Newby is believed to be reluctant to join Aaron Mauger, who is playing his first season at the club, without Evans.

Newby's wife also scouted Leicester and Harlequins for Evans as well.

Evans' departure would further compound problems for Graham Henry and the All Blacks if Dan Carter is to go overseas too.

It would leave Stephen Donald and Stephen Brett to fight it out to wear the No 10 jersey for the All Blacks, although having Brett at 10 instead of 12 exposes the lack of depth there is at second-five.

Luke McAlister, Mauger, Carl Hayman, Anton Oliver, Chris Jack, Byron Kelleher and Doug Howlett all quit New Zealand after the World Cup for European clubs and former England first-five turned commentator, Stuart Barnes, says Henry has got a tough time ahead when the All Blacks host England for two tests in June.

"He (Henry) has got problems all over the place," said Barnes.

"He (Henry) has got injuries to Dan Carter and Stephen Brett. Doug Howlett has gone, Rico Gear has gone. (Josevata) Rokocoko is injured too. They also have problems with these ELVs.

"When we play the northern hemisphere, who have been playing the proper rules, as I call them, they'll have an advantage."

Should the NZRU do more to retain our top players?