Melbourne Rebels assistant Damien Hill has been appointed head coach of the Super Rugby club for the next two seasons, replacing Rod Macqueen.

Macqueen will move upstairs to become the club's director of coaching until the end of 2013, as well as join the Rebels' board of directors.

Speculation had been rife Macqueen would step away from day-to-day coaching, and it was confirmed by Rebels chairman Harold Mitchell on Thursday.

"The Rebels and Rod Macqueen are synonymous with each other and our sincere hope is that Rod is not only with us for the next few years, but for many more to come," Mitchell said in a statement.

Former Wallabies coach Macqueen has guided the Rebels to three wins in their inaugural Super Rugby season.

They will officially pick up the competition's wooden spoon regardless of the result of their final match of the season against the Western Force on Friday night at Melbourne's AAMI Park.

Hill had success coaching in Sydney grade rugby before joining the Rebels as Macqueen's offsider.

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