The RFU have already paid out more than £1million in severance deals for Stuart Lancaster, Andy Farrell, Graham Rowntree and Mike Catt, who were all under contract until 2019, and could now face further legal costs in the club versus country row.
Borthwick thought his England deal was complete and the former Red Rose skipper announced his reunion with Jones, with whom he worked at Saracens and Japan, through the RFU's official channels.
'This is a really exciting opportunity to join the England set-up and to link up with Eddie again,' said Borthwick. 'These chances don't come around very often. I am really looking forward to the challenge and getting England beating the best sides in the world.'
With former Saracens colleague Paul Gustard also close to being confirmed as defence coach, Jones added: 'I am delighted that Steve has joined my coaching set-up. Steve has a huge amount of international experience as a player and captain and his coaching in Japan in recent years shows he can get the best out of players at the highest level.'
Jones also called Borthwick a 'young coach with great potential' and praised his 'analytical' approach.
The former lock won the last of his 57 caps in 2010. He was in the England squad that reached the 2007 World Cup final and was appointed captain the following year after Martin Johnson took charge.
Jones is yet to appoint a backs coach but Northampton's King is the front-runner for the position. The 55-year-old contacted King directly about the vacant role, risking friction in his relationship with Saints director of rugby Jim Mallinder.
'We've had no official approach from the RFU, but I am aware that Alex is going to have a conversation with Eddie Jones sometime this week,' said Mallinder. 'Clearly it's not ideal.
You don't want to lose one of your best coaches in the middle of the season.
'But we're all old enough to realise what happens nowadays. If a job becomes available for Alex, and at the moment it definitely isn't, then as a club we wouldn't stand in his way. They'll have a chat - maybe they're just going to talk about our England boys!'
Former Wasps fly-half King, 40, retired from playing in 2008 after winning five caps and was linked with an England coaching role in 2012 before moving from Clermont to the East Midlands the following year.
'He's got a good c.v. and he's had a good playing career,' said Mallinder. 'He moved over to France where he had some good experiences and had quite a natural progression into coaching. He's come back to England and he knows the Premiership players and what happens in the English set-up.'
Exeter's Ali Hepher has also been linked with the backs role and - along with director of rugby Rob Baxter - sat down with Jones yesterday for an 8am meeting in Devon.
But no suggestions were made about poaching the 42-year-old, with Baxter revealing: 'It was just a catch-up on players and a first face to face contact between the club and Eddie. There were no massive revelations. There was a bit of discussion about player availability during the Six Nations.'
While Jones is yet to meet Mallinder in person, he will continue his director of rugby meetings on Wednesday with Leicester's Richard Cockerill. It will be an opportunity for Cockerill to push forward Tom Croft and Graham Kitchener as additions for the Six Nations squad under the new regime.
Cockerill spent the best part of a decade playing with outgoing forwards coach Rowntree in Leicester's front row and, while he insists there are no vacancies at the Tigers, believes he will have no difficulty finding a new role.
'I know Graham very well,' said Cockerill. 'I have known him for 30 years. He has coached England for seven-and-a-half years and has been on two Lions tours. We spoke on Friday as mates and he's obviously bitterly disappointed at what's happened and rightly so. He will have no problem getting another job. Wig's a good bloke with a lot of experience and I think Bristol need a new forwards coach!'
- Daily Mail
