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Waratahs coach set for new contract, confident Folau will stay

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Sydney (AFP)

NSW Waratahs coach Daryl Gibson says he is close to signing a new contract and is confident that star fullback Israel Folau will do the same.

Gibson led his team to the Super Rugby semi-finals this year after they topped the Australian conference, capping a successful third season in charge.

Though he is yet to put pen to paper, he said he was close to inking a two-year extension.

"Obviously I've agreed to stay on, which is a good thing," he told reporters on his return to Sydney late Monday after a 44-26 weekend semi-final loss in Johannesburg to the Golden Lions.

"(I'm) really pleased -- I see a lot of potential in our squad and we want to fully maximise what we can do as a team."

"At the moment we're looking at a two-year deal, which would be good. Still haven't put pen to paper but certainly I'm happy with the direction of where negotiations are going."

The divisive Folau, who sparked controversy earlier this year with anti-gay social media posts, is also out of contract and there has been talk that he could move to the Queensland Reds.

But Gibson said he was confident he will remain in Sydney.

"A lot of those negotiations are with Rugby Australia but certainly every indication is that Israel is very happy here," he said.

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