Connolly's has stated he wants to win the World Cup in 2007

The 54-year-old replaces Eddie Jones, who was sacked last December after the Wallabies lost eight matches in 2005.

"I don't mind a challenge and they don't come bigger than winning a World Cup. It's a great privilege to coach the national team," said Connolly.

Connolly, who has signed a two-year deal, has also had spells in charge of Queensland, Stade Francais and Swansea.

"John's experience in Australia and overseas, his approach to the game and his ability to lead a specialist team made him the outstanding choice," said Australia Rugby Union chief executive Gary Flowers.

"We certainly have the players, now we have a head coach with the right skills to get the Wallabies back in a winning vein."

Wallabies skipper George Gregan, whose position as captain as well as at scrum-half is also under scrutiny, welcomed Connolly's appointment.

"It's good news that we've got a head coach in there with his great experience both here in Australia and what he's done overseas as well," he said.

Flanker Phil Waugh believes Connolly will add a well-needed physical edge to the team.

"He's obviously a tough guy and he enjoys playing rugby the hard way, which is probably something we need in Australian rugby at the moment," said Waugh.

The ARU are aiming to put a new streamlined coaching team in place - and that could include Bath forwards coach Mike Foley.

Former Wallabies coach Rod Macqueen, who guided them to victory in 1999, will continue as a rugby advisor.

Australia won the World Cup in 1991 and 1999 but lost the 2003 final on home soil against England.