The Australian Rugby Union have announced that the next coach of the Wallabies is set to be earmarked before the end of the year and for the first time they may be selected from overseas.

The Daily Telegraph reports that ARU boss Gary Flowers will consider overseas candidates in the search for the successor to John Connolly, who plans to step down after this year's Rugby World Cup.

"There's no policy that it must be an Australian," Flowers told the newspaper. "There has always been a strong preference for that to be the case but it's critical we get the best person for the job.

"But we've got to be a fair way down the path by the World Cup," he said.

Flowers added that no decision had been made on whether to throw the position open for applications or whether the ARU would privately approach hand-picked targets but the needs for an early selection is essential due to possible Super 14 coaching commitments.

Waratahs' coach Ewen McKenzie, one of the favourites for the role when previous coach Eddie Jones parted company with the ARU, has indicated he would be interested in the role again this time around.

"The reason I didn't apply last time was that it wasn't a reasonable proposition to ditch the team that I'd already signed staff and players to, just a few weeks before Super 14 started," said the Waratahs' coach.

"It just became too late and I thought there was an ethical issue there. I was already well and truly committed. Had it been earlier I would have had a crack at it. It doesn't mean you get it, but I would have had a go. It's certainly a job I would like to do. But if it came up again, it would depend once more on the timing."

New Zealander John Mitchell, Laurie Fisher and former Wallbies coach Jones currently hold the other premier coaching postions in Australia at the Western Force, ACT Brumbies and Queensland Reds respectively.

Fisher has failed to steer the Brumbies to the semi-finals in his two season in charge while Jones has already ruled himself out of the equations.

The leading overseas candidate is said to be long-time Crusaders coach Robbie Deans.