Sean Holley is highly rated at the Ospreys region

Assistant coach Sean Holley is set to lead the Ospreys into the 2008/9 season, BBC Sport Wales understands.

Holley is highly rated, and the region are keen to nurture a culture of promoting from within.

But an experienced, possibly foreign, coach placed above Holley and forwards coach Jonathan Humphreys is thought to be the favoured long-term appointment.

The foreign market will open up once the Air New Zealand and South African Currie Cups are completed in October.

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Former All Black captain Todd Blackadder, heavily linked with a move to the Liberty Stadium, has revealed that he will be applying for the vacant Canterbury Crusaders job.

Waikato Chiefs' Ian Foster, shortlisted by Wales last year, is understood to be sticking to his contract in New Zealand.

Ospreys coach Lyn Jones left the region by mutual consent at the end of the season, having secured the 2008 EDF Energy Cup.

Elite Performance Director Andrew Hore is leading the hunt for Jones' successor.