The Highlanders coach was expected to be revealed as the new coach of the Japan national side in the coming days.
But reports from Japanese and English media say the deal may not go through and instead former England coach Stuart Lancaster will get the job.
The Sun reported Lancaster had been offered the Japan coaching position and would, in effect, swap roles with new English coach Eddie Jones.
Jones was the Japanese coach at last year's World Cup. He then left to coach the Stormers in Super rugby but lasted only a couple of weeks before taking the England job.
The English newspaper said Lancaster wanted to get some overseas experience and, though a job with a Super rugby franchise appealed, a job with Japan was a position he would seek.
Lancaster may have coached an inept England side at the World Cup but his record with England before that was impressive, as he coached the side to second place in the Six Nations tournament four times.
He also coached the team when it beat the All Blacks at Twickenham in 2012.
The Japanese union was said to be prepared to match the salary Lancaster was paid by the English Rugby Union.
Whether Lancaster does move or not, is up in the air - and it would seem something of a strange move by the Japanese to pick a coach who made some poor moves at the biggest of tournaments, last year's World Cup.
But international rugby takes some unexpected turns and coaching appointments can become political.
Joseph was supposed to be named as Japan's new coach before Christmas but both parties failed to get their ducks in a row.
The Kyodo News also reported yesterday Joseph had not yet been confirmed as the Japan coach amid suggestions the negotiation are dragging on, centring on financial issues.
There was also the question of compensation to the Highlanders, should he leave the franchise.
His contract is up at the end of the 2016 Super rugby season and it had been thought Joseph would stay with the Highlanders until the end of the season.
Japan may want him earlier than that - it has a test series against Scotland in June - but the Highlanders would want something in return to let Joseph out of his contract.
Japanese officials may think it is not worth the hassle and simply turn to Lancaster, who is an experienced coach and is keen to come aboard.
Also floating in the background is New Zealand Rugby.
Though it has seen plenty of coaches go overseas in the past few years, if it wants to hang on to what is a valuable coach, it may try to keep Joseph in New Zealand.
It is hardly a great look for New Zealand rugby if the title-winning Super rugby coach heads overseas before the side gets a chance to defend its title.
The Highlanders have new investors, announced in November, and they will not want to lose their head coach before their side has even played a game under the new ownership.
The Highlanders are on a Christmas break and come together again to start training next Monday. The team's first pre-season game is in Hong Kong, on February 6, and its first competition game is against the Blues, in Auckland, on February 26.
