New Zealand Warriors coach Daniel Anderson is tipped to announce his departure from the National Rugby League club.

Sources close to the Warriors said he left following an argument with chief executive Mick Watson, who publicly backed Anderson as coach only two days ago.

The website www.rugbyleague.co.nz reported that Anderson had accepted a settlement from the Warriors.

It quoted Australian reports that he was likely to join the NRL's bottom-placed club, South Sydney, which sacked coach Paul Langmack.

But Souths chairman Nicholas Pappas denied the rumour, saying Anderson was welcome to apply.

Former Kiwi coach Gary Freeman said on Fox TV in Australia that an announcement would be made on Friday about Anderson leaving the club.

Attempts to contact Anderson, Watson and other club officials were unsuccessful.

Assistant coach Tony Kemp is expected to take over the team.

The change of heart is thought to stem from the return to Auckland of Warriors owner Eric Watson.

Anderson's departure follows a disastrous season for the Warriors, who reached the NRL grand final in 2002 and the preliminary final last year.

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