Unwanted one week and much sought after the next, Robbie Deans will be a busy man next rugby season.

Deans was today confirmed as the new coach for the Wallabies just seven days after being passed over for the All Blacks coaching job when Graham Henry was reappointed to the role.

The Australian Rugby Union (ARU) announced his appointment in Sydney, just moments before the New Zealand Rugby Union (NZRU) said Deans could continue to guide the Crusaders in the 2008 Super 14 competition.

A Crusaders spokesman said Deans would not comment on his promotion to the Wallabies job until he fronted an ARU press conference in Sydney tomorrow.

The ARU said Deans, 48, had signed a contract until the end of the 2011 season -- taking in the next World Cup to be staged in New Zealand -- marking the first time a foreign coach will been in charge of the Wallabies.

Deans saw off the challenges of five Australians for the Wallabies job -- former Wallabies coach and media personality Alan Jones, Blues coach David Nucifora, Brumbies coach Laurie Fisher, Waratahs coach Ewen McKenzie and Wallabies assistant coach John Muggleton.

Debate erupted this week both about Deans' prospects to get the job and, if he did, whether it was appropriate for him to continue with the Crusaders in 2008 just as he was about to guide the fortunes of one of New Zealand rugby's greatest rivals.

Chief executive Chris Moller said the NZRU board agreed on Wednesday to allow Deans to remain with the Crusaders should he be appointed Wallabies coach.

Moller said this decision was reached "subject to a number of protocols being agreed and the resolution of contractual terms".

"We will work through a process with the Crusaders and with Robbie and his management to ensure those protocols, which are intended to protect the interests of New Zealand rugby, are understood and agreed."

Crusaders chairman Murray Ellis said the Crusaders were pleased with the outcome, which "is the result of a lot of hard work from all parties to reach an understanding that works for everyone".

Moller said while it was disappointing to lose a coach of Deans' calibre to another country, the NZRU understood his desire to coach at the international level.

"In an ideal world, we would be able to retain all of our top coaches in this country but we have seen over a number of years that the depth and talent of coaching in this country means we can't keep all of them coaching in New Zealand and still meet their aspirations for higher coaching opportunities.

"Robbie has made a substantial contribution to New Zealand, Crusaders and Canterbury rugby as a player, manager and coach over a long period of time.

"We believe it is only fair that he be given this opportunity, despite the obvious concern about losing one of our best coaches to another country's national side."

Deans has had an outstanding tenure with the Crusaders, guiding them to four Super 12 titles in seven years before the three-nation competition was expanded to 14 teams this year when his side reached the semifinals.

His elevation to the Australian job will enliven the Tri-Nations next year, particularly when he and Henry lock horns on the international stage for the first time in Sydney on July 26 when Australia host the All Blacks.

The ARU said that after a thorough selection process, involving interviews with six quality candidates, the board resolved that Deans was "the best person for the job".

"Robbie comes with a superb record and I am delighted to announce he will be joining the ARU," ARU chairman Peter McGrath said.

"The ARU board presented the selection panel with a brief to find the most outstanding candidate. We as a board consider this appointment satisfies that objective.

"The Australian public would expect nothing less from us and we see this as a new start for Australian rugby.

"In terms of our playing ranks, we are on the doorstep of generational change.

"We believe Robbie Deans is the man to move us into that new era.

Timeline of events which led to Robbie Deans being appointed Wallabies rugby coach today:-

June 7: John O'Neill returns as chief executive of the Australian Rugby Union (ARU) and confirms it will consider a foreigner as Wallabies coach for the first time. Says he has "enormous time" for Robbie Deans and is committed to finding the best man for the job.

August 1: O'Neill releases his book It's Only a Game. Reveals he wanted Deans to succeed Eddie Jones in 2004 but the ARU policy banning foreign coaches got in the way. Deans created a culture to be envied at the Crusaders, ONeill wrote.

September 1: The Wallabies coaching position, to be vacated by John Connolly after the World Cup, is formally advertised. Reports say the ARUs shortlist is Deans, Ewen McKenzie, Scott Johnson, John Muggleton, Laurie Fisher and David Nucifora, with Deans a pronounced favourite.

October 6: Wallabies and All Blacks are bundled out in the World Cup quarterfinals within hours of each other, by England and France.

Oct 17: Deans, O'Neill and ARU high performance manager Pat Howard meet in Paris for a chat over coffee.

Oct 31: Deans breaks his silence, announcing his intention to apply for the All Blacks job, and says he won't be entering the Wallabies race. Nucifora becomes favourite to succeed Connolly.

November 2: Former successful Wallabies coach of the 1980s, Alan Jones, announces his surprise application with the backing of Queensland Rugby Union chairman Peter Lewis.

Nov 9: An ARU panel of former Wallabies Howard, Brett Robinson, Rod McCall, Michael Hawker and Mark Connors interview the final five candidates: Jones, McKenzie (Waratahs), Muggleton (Wallabies assistant), Fisher (Brumbies) and Nucifora (Blues).

November 23: O'Neill goes on leave after undergoing neck surgery, delaying the ARU board discussion on the issue until mid-December.

Nov 27: NZRU announces four shortlisted candidates for All Blacks coach: Graham Henry, who was forced to re-apply, Deans, Colin Cooper and Ian Foster.

December 6: NZRU panel interviews the four candidates amid rumblings of ever-increasing board support for Henry.

Dec 7: Henry is re-appointed. Australian bookmakers shorten Deans to $1.50 favourite to become Wallabies coach. ARU deputy chief executive Matt Carroll tells Deans to call us. McKenzie says Deans' appointment would bring into question the whole ARU coaching system and wonders whether his application was a waste of time.

Dec 8: Deans formally applies after a telephone call from Howard. Reports say his salary will be around $A1 million. Former test lock Peter FitzSimons says a New Zealander coaching the Wallabies would be a black day for rugby.

Dec 9: Senior Wallaby Chris Latham backs Deans as the best candidate.

Dec 11: Deans travels to Brisbane to be interviewed by the same five-man ARU panel. Wallabies great John Eales adds his backing to Deans' application.

Dec 14: ARU confirms Deans as the first foreign coach of the Wallabies.