Nielsen at the announcement where he was unveiled as coach

Nielsen, 38, a former first-class wicketkeeper-batsman, is currently head coach at Cricket Australia's Centre of Excellence in Brisbane.

And Buchanan said: "I think this is an outstanding appointment. He is the ideal man to take the team forward."

Buchanan, who replaced Geoff Marsh as national coach in 1999, announced his intention to quit last August.

He has overseen one of the most successful eras in Australian cricket, having won the 2003 World Cup, set world records for the most consecutive Test and one-day wins and, most recently, leading Australia to the first Ashes whitewash in 86 years.

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But Nielsen, who played 101 matches for South Australia before retiring in 1999, insists he is capable of taking the team to new heights.

"I'm incredibly proud, honoured and excited to have been offered this opportunity.

"Moving forward, this job represents a great opportunity to work with a fine group of players who are an excellent cricket team," he said.

"Filling John Buchanan's shoes will be a big job. John is a leading light in cricket coaching globally and his record speaks for itself."

Tim's relationships with our established players and rising stars are excellent CA chief James Sutherland

Nielsen has the full support of captain Ricky Ponting, who added: "On a personal level I'm delighted, having played against Tim and having worked with him when he was assistant coach.

"We have an excellent working relationship and I'm looking forward to the challenges that lie ahead."

A panel headed by former national team captain Mark Taylor was reponsible for recommending Nielsen to Cricket Australia.

There were bigger name candidates available like Tom Moody, Bennett King and Greg Chappell, who are currently in charge of Sri Lanka, West Indies and India - but Moody ruled himself out last week.

And Cricket Australia chief executive James Sutherland said: "It is testament to Australian cricket's high performance programmes that the new coach has been appointed from within our coaching system.

"His relationships with our established players and rising stars are excellent and I know the playing group is looking forward to working with him."