Australian rugby union coach Greg Smith resigned yesterday amid speculation he was about to be sacked following the Wallabies biggest defeat by South Africa last Saturday, rugby officials said in Sydney.

Australian Rugby Union (ARU) managing director John O'Neill said he had advised Smith to resign but disagreed that he had been pushed, adding: "It's best described as holding hands."

O'Neill confirmed ACT (Australian Capital Territory) Brumbies coach Rod Macqueen, Cardiff coach Alec Evans and Queensland coach John Connolly as candidates.