Kirwan's existing deal was due to expire in June. The former All Black took over as Italy coach from his compatriot Brad johnstone in 2002. Under Kirwan Italy notched up one win, against Scotland, in this season's RBS Six Nations.

Meanwhile, Wallabies coach Eddie Jones has missed out on his preferred choice as assistant coach after Wales backs coach Scott Johnson opted out of negotiations.

Jones wanted to have Johnson in the role ahead of Australia's domestic Test season, starting in June, but decided against it after Australian-born Johnson baulked at making a decision. Johnson, a key figure in the Welsh team's revival during last year's World Cup, was to be Jones's coaching co-ordinator for three years heading into the 2007 tournament.

Jones was forced to look around the rugby world for replacements after the World Cup when Ewen McKenzie and Glen Ella left and took up other employment opportunities.

Former Wallaby prop Andrew Blades, coaching Newcastle in England, is set to become the new Wallabies' forwards coach. "We were obviously interested in Scotty, I don't think there was any secret about that but he couldn't commit, one way or the other," Jones said.

"We've got a time-frame we operate under, we want to have all coaches on board by May 14 at the latest and he couldn't commit to that so we ended the negotiations."

The former NSW assistant coach travelled to Sydney last month to meet with the Australian Rugby Union, but it's believed a family illness was behind his failure to sign up.

Wales was eager for Johnson to continue as skills coach under new national coach Mike Ruddock, while he has received other lucrative coaching offers in Europe.

Before joining Wales, Johnson helped Jones prepare the Australian A team that beat the British and Irish Lions at Gosford in 2001. Jones said there were "two or three candidates still in the running" to take the job.

NSW backs coach Andy Friend is a frontrunner while ACT deputy Anthony Eddy has also been mentioned, although he has put his hand up for the vacant Brumbies head coach role.

AFP - 2004.