Clayton McMillan will depart as Chiefs coach at the end of the current Super Rugby season.
Newstalk ZB first reported McMillan will head to Irish club Munster, who he coached the All Blacks XV against last year.
He had emerged as the “bookies favourite” for a role which has remained vacant at Munster since Graham Rowntree’s exit in October.
McMillan is in his fifth year as Chiefs coach and has led the franchise to three Super Rugby finals and a semifinal.
“It has been an absolute privilege to work with the Gallagher Chiefs and NZ Rugby. I am eternally grateful for the opportunities I have been afforded, and for the support of those I have worked alongside,” McMillan said in a statement.