The Scottish Rugby Union have taken a major step towards creating a fourth professional team after two key appointments for the Caledonia area.

Scottish Students coach Jonathan Phillips has been unveiled as Academy manager to oversee the development of the most promising young players in the area which encompasses the Highlands and Islands, Inverness, Dundee, Perth, Stirling and Fife.

And Jock Peggie has also been appointed to the post of development officer in the Highlands and Islands to succeed Bryan Easson.

Now SRU director of rugby Jim Telfer believes the creation of the fourth team to run alongside those at Edinburgh, Glasgow and The Borders is within sight.

Telfer said: "There is tremendous commitment and enthusiasm for the game in Caledonia - the district that nurtured such talent as Simon Taylor and Tom Smith.

"The posts we've created will mean that, with the continuing support of clubs and schools, we are able to harness the talented players in Caledonia and advance their readiness for the upper levels of the game.

"We remain committed to the creation of a fourth professional team in Caledonia when the conditions are right and we are building that into our new five-year plan."

Phillips' remit is to improve the players' readiness for professional rugby.

Phillips played full-back for Wellington at age grade and provincial levels before moving to Scotland to coach Dundee HSFP in 1995.

A year later he became development officer for Aberdeen and the North East before progressing to his role as rugby development manager with Caledonia in 2000.

The new Caledonia team will join Edinburgh, Glasgow and Borders and could be up and running by 2005.

However, there is still no decision on where the team will be based.

An original Caledonia pro team existed in Perth four years ago but could not attract quality players or big crowds.