Rebels' playmaker James O'Connor will be much sought after when his contract expires © Getty Images

Enlarge

Related Links

Features: Super Rugby round 15 team of the week

Features: What we learned from Super Rugby round 15

Matches: Crusaders 23 - 22 New South Wales Waratahs

Picture Gallery: Super Rugby - Round 15

New South Wales Waratahs coach Michael Cheika has poured cold water on rumours he's in discussions with Wallabies and Melbourne Rebels playmaker James O'Connor.

As revealed in The Australian on Wednesday, Cheika insisted he had had no talks with the Rebels' fly-half.

"No. Never have," Cheika said. "We are covered in that part of the field for next season."

There has been speculation Kurtley Beale will almost certainly join the Waratahs as a replacement for Japan-bound Berrick Barnes in 2013, but Beale's future remains clouded by his off-field situation.

Beale finished his stint at a private health facility in Sydney on Monday night, after receiving treatment for alcohol-related issues, and will resume playing with Sydney club Randwick against Sydney University on Saturday.

Beale trained with Randwick under the watchful eye of Wallabies coach Robbie Deans on Tuesday night and, should he tick all the right boxes both on and off the field, will likely re-sign with the ARU and the Waratahs.

"We are waiting to see what happens with the union (ARU)," Cheika said. "We'll see what happens with him and Melbourne. They need to get their own stuff organised. Once that is finished we'll see if we still need a player in that position and go from there."

The Waratahs also have uncertainty over star fullback Israel Folau, who may return to rugby league at season's end, which could create room under their salary cap for O'Connor. Another possibility for O'Connor is Ewen McKenzie's Queensland Reds, which will have funds available after Digby Ioane's decision to sign with French club Stade Francais.

Meanwhile, the Tahs look certain to be without Mitch Chapman for the remainder of the season after the reserve forward suffered a knee injury at training on Monday night.

"He's out for the season, I'd say," Cheika said. "He might get back for the Reds game, I don't know. He has played well and obviously with the (Wallabies) players who might be missing next week (against the Western Force) he would have been a key ingredient to the team. It's unfortunate, but we are more thinking about this week's game. We'll get onto that one and worry about the rest later."

Backrower Pat McCutcheon is expected to replace Chapman against the Crusaders in Christchurch on Friday night, while Cheika is also looking to blood rookie Jed Holloway.

"McCutcheon will come back into calculations," Cheika said. "That will be a nice addition for us. I've been having a good look at Jed Holloway lately. Had a great game for his club (Southern Districts) on the weekend."