The WRU issued a statement which read: "The Welsh Rugby Union general committee regrets to have to announce that after a meeting between the Wales national coach Graham Henry and senior officers of the Union, it has been agreed by both parties that Graham will leave his position this week. Both sides have thought deeply about this decision and believe it has been taken with the best interests of Welsh rugby in mind."

Glanmor Griffiths, chairman of the Welsh Rugby Union general committee, said: "The WRU general committee would like to thank Graham Henry for his contribution to Welsh rugby since his appointment as our national coach in August, 1998, and would like to wish him and his family all the best in the future."

Henry took over as Wales coach in August 1998 and was handed a five-year contract by the WRU, intended to run up to and including the 2003 World Cup. The deal was reputed to be worth #250,000 a year which made him the highest paid coach in Welsh rugby history.

The WRU will obviously move swiftly to find a replacement for the New Zealander with Wales due to host France in Cardiff in ten days time. Among the favourites to take over is current A coach Mike Ruddock.