BREAKING: Wallabies suffer huge Joe Schmidt blow

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NEWS: Joe Schmidt will step down as Wallaby coach at the end of the Rugby Championship in a blow to Australia's World Cup hopes.

Rugby Australia wanted an answer from Schmidt before the start of the Super Rugby Pacific and the Kiwi confirmed on Thursday he would extend his contract beyond the British and Irish Lions tour, but won't continue through to the World Cup in Australia in 2027.

His last Test will be against the All Blacks in Perth on October 4.

The departure of the 59-year-old forces the governing body to search for a fifth Wallabies coach in six years.

Queensland's Les Kiss, Waratahs mentor Dan McKellar and the Brumbies' Stephen Larkham are understood to be in the running although RA is set to explore all options.

The new coach will steer the Australians on the end-of-year tour, with their first clash on October 25 in Tokyo against Japan, who are now coached by Eddie Jones.

Australia's 2024 end-of-year tour included wins over England and Wales and a narrow loss to Ireland which increased optimism over the direction of the Wallabies under Schmidt after a disastrous World Cup under Jones in France.

However, Schmidt's wife and son, who requires constant medical care, live in New Zealand which swayed his decision.

It's believed Schmidt is open to staying on as a consultant but that would be dependent on the new coach.

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