Colling had been employed as the union's resource coach in the Otago Country area, based in Queenstown, for the past couple of years, but will be moving to Dunedin to take up the new position.
Colling, an inside back, played one game for Otago in 1998, and is the younger brother of former New Zealand netballer Belinda Colling.
His older brother, Michael, played 29 games for Otago in the 1990s, while father Don played 80 games for the province from 1968-1977.
Colling (32) has been employed for the past couple of years by the union, working in the regions, and also coached the Otago Country sevens side at the national tournament earlier this year.
He replaces Ian Arthur, who was the union's academy manager for 11 years before he left in July.
Tweaking of the position by union chief executive Richard Reid has resulted in the name change to player development manager.
The role will encompass all aspects of player development, from identifying talent to increasing players' skills and improving their fitness.
Colling could not be contacted yesterday.