Former Wales coach Graham Henry has hinted that he feels his future lies back in New Zealand.

Henry, who also coached the British & Irish Lions in 2001, told the New Zealand Herald newspaper that, "My gut feeling is I will stay in coaching, and probably in New Zealand.

"At the moment I am just chilling out, but knowing myself, if I am wanted, I am sure it would be a positive thing for me to get involved again in New Zealand."

Henry was also reluctant to expand on his recent departure frm the highest profile job in Wales.

"I have a lot of time for the people in Wales and those on the union. I don't want to go into some things because once I do, you'll report it and I would be embarrassed. There was already enough friction without me adding to it.

"I just did not have the edge, and I do not want to sound dramatic, but it was the right time for the team to have a different voice."

Henry also feels he is a better coach than when he left Auckland for Wales in 1998. The man who guided Wales to the 1999 World Cup quarter-finals believes coaching at international level has broadened his knowledge and experience of the sport.

The former Auckland and Wales supremo has also been linked with the Sharks Super 12 coaching position in South Africa, should current coach Rudolf Straeuli be successful in his application for the Springbok job.

Previously, the New Zealand Rugby Football Union have declared that former Wales coach Graham Henry will not be frozen out of their domestic coaching scene.

Henry, 54, resigned his post with Wales on Wednesday and is expected to return to New Zealand by the end of the month to re-charge his batteries.

The coach who led Auckland to four consecutive NPC titles and the Blues to the first two Super 12 crowns irked the NZRFU when he left hastily for Cardiff in 1998, announcing his move at a press conference at Auckland airport.

His acrimonious departure prompted the NZRFU to introduce the "Henry clause" stating that no New Zealander who coached an international side would be considered for the All Blacks job.

That stance was eventually softened so coaches could return and be considered providing they proved themselves at domestic level.

All Blacks coach John Mitchell took advantage of this dispensation when he took over from Wayne Smith last year.

NZRFU chief executive David Rutherford said there was "no animosity" over the manner of Henry's departure and he would be welcomed back to the fold in the same manner current All Black coach John Mitchell and Otago's Laurie Mains were after spells abroad.

"There are no issues relating to that," Rutherford said. "We reviewed the policy [Henry clause] two years ago and removed it. There is no impediment - John Mitchell proves that."

The amended policy states a returning coach must make a "significant contribution" to New Zealand rugby over a year before he would be considered for a Super 12 or national post.

Henry would be able to make an immediate return to coaching at NPC level because provinces chose who they wished.