Former Bath coach John Connolly has been given the task of leading Australia at the 2007 World Cup.
Connolly's has stated he wants to win the World Cup in 2007
The 54-year-old replaces Eddie Jones, who was sacked last December after the Wallabies lost eight matches in 2005.
"I don't mind a challenge and they don't come bigger than winning a World Cup. It's a great privilege to coach the national team," said Connolly.
Connolly, who has signed a two-year deal, has also had spells in charge of Queensland, Stade Francais and Swansea.
"John's experience in Australia and overseas, his approach to the game and his ability to lead a specialist team made him the outstanding choice," said Australia Rugby Union chief executive Gary Flowers.
"We certainly have the players, now we have a head coach with the right skills to get the Wallabies back in a winning vein."
Wallabies skipper George Gregan, whose position as captain as well as at scrum-half is also under scrutiny, welcomed Connolly's appointment.
"It's good news that we've got a head coach in there with his great experience both here in Australia and what he's done overseas as well," he said.
Flanker Phil Waugh believes Connolly will add a well-needed physical edge to the team.
"He's obviously a tough guy and he enjoys playing rugby the hard way, which is probably something we need in Australian rugby at the moment," said Waugh.
The ARU are aiming to put a new streamlined coaching team in place - and that could include Bath forwards coach Mike Foley.
Former Wallabies coach Rod Macqueen, who guided them to victory in 1999, will continue as a rugby advisor.
Australia won the World Cup in 1991 and 1999 but lost the 2003 final on home soil against England.