Robbie Deans has quit as Australia coach and is set to be replaced by Queensland Reds' Ewen McKenzie.
Deans, who took charge in 2008 and whose contract was due to expire at the end of the year, has been under pressure for some time and the Wallabies' 2-1 Test series defeat to the British and Irish Lions made the Kiwi's position effectively untenable.
ARU chief Bill Pulver met Deans on Monday and McKenzie, who is expected to be officially unveiled on Tuesday, announced in March he would quit the Reds at the end of the Super Rugby season having steered the franchise to a first Super 15 championship in 2011 in addition to back-to-back Australian conference titles.
The 48-year-old was a prop in the victorious Australian World Cup side of 1991 and is believed to have beaten off competition from the ACT Brumbies' South African coach Jake White, with Australia's next Test against New Zealand on August 17 in the opening match of the 2013 Rugby Championship.
Deans had a mixed record as boss of Australia, winning 43 and losing 29, with the high-point being the 2011 Tri-Nations triumph in the weeks before the World Cup in New Zealand.