Former Queensland boss Phil Mooney has been appointed to coach New Zealand side Otago in the provincial Air NZ Cup for the next two years.

He replaces Steve Martin, who resigned this year after Otago finished 10th in the 14-team competition.

Mooney, who coached Queensland from 2007 until this year, has also coached the Australia A and Australian under-19 teams, and currently has a role as a skills coach with the Brisbane Broncos NRL club.

Otago chief executive Richard Reid said on Tuesday that, under a new structure, part of the Australian's role would be to mentor coaches with a view to ensuring Otago were well placed in the future.

"He has skills and experience that made him the outstanding candidate for the position and it's up to him now to pass on that expertise to both coaches and players," Reid said.

"While it's unusual for an Australian to be appointed to such a high profile coaching role in New Zealand, the determining factor was that we needed the best person for the job in the interests of all who have a passion for Otago rugby."

Mooney is expected to settle in Dunedin in February.

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