Kidney's Ireland contract expires in June

Kidney, who led Munster to Heineken Cup finals in 2000 and 2002, replaces new Wales coach Mike Ruddock at the Gwent regional side on a two-year deal.

Dragons captain and former Wales centre Andy Marinos has been appointed as the new chief executive at Rodney Parade in place of David Jenkins, meaning he will hang up his playing boots.

Kidney had been offered two posts by the Irish Rugby Football Union.

One was performance manager for age-grade rugby and the other coach of the Under-21s.

Spokesman John Redmond said the IRFU had been keen to keep Kidney in Irish rugby but respected his decision and wished him well.

Kidney will tour South Africa with Ireland before taking up his Dragons post on 1 August, commuting to the job from his Irish home.

I believe we have the right people in the right positions to take this team forward Dragons benefactor Tony Brown

Leigh Jones, currently in charge of the Newport team that won the Welsh Premier, is favourite to become Kidney's assistant.

"I am very excited to be here and relishing the task before me," said Kidney.

"Rugby in the area has very strong traditions and that's something I can relate to.

"There is a great structure at the club and the players possess the ability to achieve great things, it is up to me to bring that out of them."

Dragons benefactor Tony Brown said he was delighted with the new appointments.

"I believe we have the right people in the right positions to take this team forward," said Brown.