Warren Gatland, the man responsible for ruining England's Six Nations Grand Slam ambitions, has stepped down as Ireland coach after failing to negotiate a new contract.

Gatland, who took charge in March 1998, will be replaced by his assistant Eddie O'Sullivan who takes over until the end of the 2004 Six Nations.

The Ireland Rugby Football Union have also named Munster coach Declan Kidney as O'Sullivan's assistant. Munster have a Celtic League quarter-final clash at home to Llanelli on Saturday and it remains to be seen whether Kidney will be in charge.

Gatland's contract was due to expire after next year's Six Nations Championship and the IRFU had hoped he would lead Ireland through to the 2003 World Cup finals Down Under. But negotiations over a new contract broke down.

The former All Black hooker had just guided Ireland through a successful Six Nations Championship campaign with victories over France, Wales and England - a win which denied England a Grand Slam. Ireland also gave the touring New Zealand All Blacks a fright in Dublin before succumbing to defeat.

A statement from the IRFU said: "Following review meetings, it has been agreed that Warren Gatland will not continue as Ireland's national coach. With a view to the forthcoming Six Nations championship and Rugby World Cup 2003, and to allow adequate lead-in preparation, a new coach has been appointed.

IRFU chief executive Philip Browne said: "Warren Gatland has made a significant contribution since his appointment as Irish team coach in 1998 and the IRFU wishes to record its appreciation of his efforts.

"Major investment has been made, and continues to be made, in the structures of Irish rugby with a view to further raising the performance levels of our team so that it consistently competes at the highest levels of world rugby.

"Following on-going and detailed reviews it was agreed that it is in the best interests of all concerned to end the contract with immediate effect.

"A major factor in the timing of this decision is the importance of having the new coach in place in the lead up to the forthcoming Six Nations Championship and ultimately to maximise preparations for the Rugby World Cup in 2003."

Gatland said: "I want to thank the players and wish them all the best for the future. I look forward to fulfilling a new challenge in rugby."