Brian Ashton appears set to accept his demotion from England head coach to a role with the National Academy.
Ashton was axed following the appointment of Martin Johnson as team manager this week and had been expected to leave the Rugby Football Union.
Speaking at Johnson's official unveiling at Twickenham on Friday, RFU chief executive Francis Baron said: "I spoke to Brian yesterday and his advisors, and Brian has confirmed to me his interest in taking up the new position that we have offered him.
"I will be sitting down with Brian next week to finalise the details of the new position so that Brian can start work in his new role.
"I very much believe Brian will remain a part of the team.
"He has a massive amount still to offer England rugby."
Baron acknowledged the RFU had badly handled the transition between Ashton's tenure and the appointment of Johnson.
"We accept in some respects that the RFU could have handled the process better and lessons have been learned," he said.
"However, I do not accept that Brian has not been properly dealt with overall.
"Brian is a highly-valued employee of the RFU. He remains under contract with us, that contract caters for Brian to be switched to alternative roles within the RFU.
"We want Brian to stay as part of our elite rugby structure.
"We have offered him the alternative position of head coach of the National Academy. This is a considerably wider role than Brian previously held in the National Academy.
"It covers the Saxons, the under-20s and the under-18s.
"We believe Brian has an outstanding track record in developing young talent of the future.
"We believe that this role is ideally suited to Brian's special skill set."
Rob Andrew, the RFU's director of elite rugby, said Ashton had accepted the changes.
Andrew said: "It has been a very difficult situation for him and me personally and professionally.
"We are working closely with Brian and we spoke this morning. He is very keen to continue work with the RFU and over the next few days and weeks we hope to sort that out."
Looking forward, Andrew believes the RFU have found the right man to lead England back to the top of the world game.
Johnson has no coaching experience but carries enormous gravitas as the captain of the World Cup-winning side of 2003.
Andrew added: "I am delighted Martin is sat next to us here. This is a long-term appointment for English rugby.
"It has not been the easiest couple of weeks but it is the start of a new era."