Munster coach Tony McGahan is set to leave at the end of the season to become the new Australia defensive coach, the Irish Times has reported.
It is understood that McGahan has already informed his players that he is to become part of Robbie Deans' Wallabies coaching team.
The Queenslander had been offered a one-year extension to his Munster deal, with the option of a further year.
He has guided Munster to two League titles so far in his four-year reign.
McGahan was defensive coach with Munster when they won Heineken Cup in 2006 and doubled up as backs coach for their 2008 European triumph.
He assumed the role of head coach the following season.
Munster will play Ulster in this season's Heineken Cup quarter-finals and the Irish province are also well placed to reach the semi-final play-offs in the Pro12.