Phil Mooney's title has been changed to co-coach but the Otago union says it should not be seen as a demotion.
The Otago Rugby Football Union yesterday also confirmed former first five-eighth Tony Brown is to return next season and the chief executive's title is changing to general manager.
Mooney's future had been uncertain since his first season as coach ended with Otago in last place in the 14-team ITM Cup.
Eight weeks later, the changing of his title suggests the ORFU has gone for a compromise, neither sacking nor endorsing him as head coach a year into a two-year contract.
But ORFU chairman Wayne Graham said Mooney had "very strong qualities" and was rated highly by players, and the new title should not be considered a demotion.
"It's an opportunity for Phil to stay with us, and he's a big part of Otago rugby now," Graham said.
"This is a way for us to add some support to him because he was under-resourced this year and he didn't have the level of player talent he needed."
Internal and external reviews had been held in the past eight weeks, and a "very concerned" board had decided to examine the coaching role, Graham said.
The board had begun the process of finding a co-coach for Mooney.
It had not yet been decided whether to advertise the position, Graham said.
With Mooney a backs coach, it seems likely the co-coach will be a forwards specialist, the local contenders possibly incumbent assistant David Latta, Otago B assistant Andy Hunter, or former Otago assistant Phil Young.
Mooney yesterday said he had "no issues" in relation to the change in his job title.
The review of the season had clearly shown the need to beef up resources around the Otago team, and introducing a co-coach would also help with succession planning.
"Part of my charter when I came in was developing a person to step into the role if and when I go. This is a way of achieving that.
"We've all tried to be proactive in finding solutions. And I am pleased to be a part of that."
Mooney co-coached at club level with former Brumbies and Blues coach David Nucifora.
"You can get caught up with titles. It's more about finding two coaches with complementary skills."
In the footsteps of prop Kees Meeuws, Brown will be back for one more Otago season to give Mooney a veteran option at the key first-five role.
Former All Black Brown, who played the last of his 71 games for Otago in 2003, has been playing in South Africa and Japan.
He wants to play one final season for Otago, then one more season in Japan, and then return to New Zealand.
"He also wants to offer technical assistance in a player-mentoring sort of role," Graham said.
