But Edwards has made the decision to continue with Wales ahead of the 2012 RBS 6 Nations.
"I kept in touch with him daily and concluded matters positively on Saturday," said WRU chief Roger Lewis.
"I'm delighted for Welsh rugby, I'm delighted for the team of coaches we've got and I'm delighted for Shaun.
"He has proved himself as a coach at the very highest level and we know what huge respect and affection he is held in, not only by the players but also by the Welsh rugby public.
"Our whole focus must be building on that and looking to the future. That is why the appointment of Shaun Edwards is so important."
Edwards remains keen to continue his involvement at club level as well as his international commitments but while Cardiff Blues were interested in securing his services, Lewis confirmed he is more likely to join another Premiership side.
"Shaun really gets switched on and motivated by weekly rugby and he wanted to keep a link with the English Premiership," added Lewis.
"He's currently in negotiation with an English club. He won't leave the Wales camp in Test week, but there will be an opportunity for him to keep his hand in with the Premiership."