Canterbury coach Steve Hansen has turned his back on the opportunity to apply for the position of All Blacks supremo to fulfil his commitment to Graham Henry and Wales.

Hansen had given Wales a verbal assurance he would join them at the end of this year as assistant to Henry but following current All Blacks coach Wayne Smith's indecision and the resulting head coach vacancy he through his name into the hat before last Friday's deadline.

But Hansen has now withdrawn his application and will fulfil his commitment to Wales.

"All my coaching life I was looking towards something with the All Blacks, but I was under a moral obligation to stay with Wales," he told the New Zealand Herald.

Henry told his prospective sidekick to follow his instincts, and that he would support him in whatever path he chose.

After consulting with his family he informed New Zealand Rugby Union bosses David Rutherford and Steve Tew.

"I am going to withdraw my All Black application. It is a gut feeling; my word is my word and I have got to live by it," Hansen said. "I would love to be part of the All Blacks, but you make decisions and you have got to live by those.

"If you put the All Blacks job up against Wales, the All Blacks would win, but I have said I will go."

Hansen's removal from the All Black coaching race will reduce some pressure in Canterbury rugby circles, with Smith already facing one challenge from provincial compatriot Deans.

"It was a very tough decision," Hansen said. "But I am not walking away from New Zealand."

Before he heads for a two-and-a-half-year deal with Wales next month, Hansen has to complete his NPC commitments.