Nigel Davies has been appointed as the new coach of Gloucester after leaving Llanelli Scarlets.
The former Wales and Llanelli centre has succeeded Bryan Redpath, who resigned in April and has since joined Sale Sharks as a director of rugby.
Davies had been in charge at Scarlets since May 2008.
He has twice reached the last eight in the Amlin Challenge Cup and been credited with developing a crop of exciting Welsh talent.
Wing George North, centres Jon Davies and Scott Williams and fly-half Rhys Priestland have all emerged under Davies' guidance and are now established Wales internationals.
Davies had nine months left on his current Scarlets deal but Gloucester were willing to pay the Welsh region.
The Kingsholm outfit are understood to have also interviewed Carl Hogg, Steve Meehan and John Plumtree before deciding on Davies.
His departure comes at a time of financial hardship for all the Welsh rugby regions, who have set a self-imposed salary cap of £3.5m for next season.
That compares unfavourably to the figure imposed on English Premiership sides and is dwarfed by the £7.1m limit of French Top 14 clubs.
From the 2012-13 season, English clubs can spend a maximum of £4.5m if "academy credits" for fielding home-grown talent are taken into account, and they can also nominate one marquee signing to be excluded from the cap.
Scarlets have lost 10 players from last season's squad, including Wasps-bound fly-half Stephen Jones, while coaches Garin Jenkins and Vernon Cooper have also left.
Previously Davies was the Welsh Rugby Union's head of rugby development and was also assistant Wales coach to Gareth Jenkins from 2006 to 2007.
Following the dismissal of Jenkins after Wales' dismal performance at the 2007 World Cup, Davies took charge of the national team on an interim basis for a Test against South Africa.
He won 29 caps at centre between 1988 and 1997 and captained his country against France in 1996.
Former Ireland and Scarlets flanker Simon Easterby has emerged as the favourite to succeed Davies at Parc y Scarlets.
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