Robbie Deans will spearhead a leaner Wallabies coaching panel while the Australian Rugby Union has dramatically slashed his support staff.

Speculation over the Wallabies coaching team ended on Monday when former Test backrower Jim Williams was appointed alongside new head coach Deans and existing forwards coach Michael Foley.

The permanent coaching staff has been cut from four to three with Deans taking on the attack and defensive duties previously held by Scott Johnson and John Muggleton respectively.

Renowned for being a hands-on coach, Deans is not expected to rely on the consultants that predecessor John Connolly drafted in during his tenure.

ARU chief executive John O'Neill said his organisation had parted company with Johnson and was currently in discussions with long-serving employee Muggleton over "a potential role within the ARU".

Williams, who is currently forwards coach at Irish team Munster and played 14 Tests for Australia, will supervise the Wallabies' breakdown work and assist Deans in the defensive department.

Former Test hooker Foley, who is contracted at the ARU until April 2009, will remain in charge of set piece strategy.

"The (coaching) team looks really strong, it brings together experience and intellectual property from the northern hemisphere, people who have been involved before and an extremely successful Super 14 coach, so the blend is pretty good," ARU high performance general manager Pat Howard said.

O'Neill said the ARU would meet their contractual obligations to Johnson, who was reportedly disappointed with the decision.

"There's no acrimony with this, it's the start of a new era, you get a new head coach, you're bound to have changes," O'Neill said.

He said the support staff which numbered between 19 to 21 for last year's World Cup would be scaled back to around 11.

"I think this is Robbie's preference, he's a far more hands-on coach," O'Neill said.

"I think these things need to be looked at in the hard cold light of day.

"I think it is a far more manageable group and can be far more effective than an entourage of 20 to 21."

The reduction in staff may also help the ARU's bottom line, with O'Neill recently revealing that they were set to announce a loss of $7 to $8 million in April.

The usually forthright administrator turned a trifle coy when asked how much the cuts would save the ARU, just saying "it all helps".

"The cuts are across the board."

"We are multi-skilling people.

"Instead of having two physios and a masseuse, we'll cut back to one physio.

"Each area is taking a bit of a hit."

Howard said Williams was among a large list of Australian coaches based abroad who came under consideration for the new coaching panel.

He said Williams would join the Wallabies at the latest a week before Deans started and possibly earlier, depending on his Munster commitments.

O'Neill revealed Deans had inquired about the possibility of bringing more New Zealanders into areas other than coaching, but stressed the ARU's policy was to appoint only Australian assistant coaches.

"We're not saying one Kiwi accent is too many, the fact is we want Robbie to develop Australian coaches," O'Neill said.

"I think Jim Williams and Michael Foley will be all that much better for coaching under Robbie Deans."

The ARU boss also revealed current Blues coach David Nucifora, favourite for the Wallabies position until Deans became available, was being considered another role.

"We are going to discuss with David some other potential roles, perhaps an Australia A team and some other responsibilities," O'Neill said.

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