The Australian Rugby Union on Wednesday announced Michael Cheika as the new Wallabies coach ahead of a tough European tour.

Cheika's track record includes winning the European Cup with Irish side Leinster in 2009 and the NSW Waratahs' maiden Super title earlier this year.

The 47-year-old Cheika is still contracted to the NSW Waratahs until the end of 2015 and will retain that position while coaching the Wallabies.

Former coach Ewen McKenzie quit a few hours before the Wallabies lost 29-28 to New Zealand in Brisbane on Saturday in the midst of a crisis caused by utility back Kurtley Beale allegedly sending offensive text messages to a team official.