Wednesday 16 December 2015 11:23, UK
Steve Borthwick has quit Bristol to take up his new role with England, but the RFU is yet to agree a compensation package.
The Rugby Football Union on Tuesday announced the former England captain as Eddie Jones' new forwards coach, only for Bristol to issue a statement claiming Borthwick remains their employee.
The Championship club denied giving the RFU permission to speak to Borthwick, who joined after the World Cup, where he was part of Jones' Japan backroom staff.
But Sky sources say the 36-year-old has now resigned his position, leaving the RFU and Bristol to reach an agreement.
If a deal can be struck Borthwick will be the first man appointed to the Jones' team since the departures of Andy Farrell, Graham Rowntree and Mike Catt were confirmed on Monday.
Jones and Borthwick worked together for three years with Japan before the recent World Cup, overseeing one of the biggest shock results in the tournament's history when South Africa were beaten in the group stage.
In a statement released through the RFU Borthwick said: "This is a really exciting opportunity to join the England setup and to link up with Eddie again.
"This is a huge honour to be asked as these chances don't come around often. We have an exciting group of players in England and I am really looking forward to the challenge and getting England beating the best teams in the world."
Jones added: "I have known him for a long time through Saracens and Japan and he has done fantastic work as a coach."
But the RFU announcement was met with a Bristol response which read: "Steve Borthwick has today indicated to the club that he wishes to join the RFU coaching team. Bristol Rugby want to make it clear that we have not agreed that he can leave our employment.
"Steve Borthwick is subject to a recently signed long term employment contract. Bristol Rugby did not give the RFU permission to speak with him. Bristol Rugby will take all reasonable actions as necessary to protect the club's position and, therefore, will not be making any further statement at this stage."
Sky Sports pundit and former England international Will Greenwood believes Borthwick was left with no option other than to resign from his position.
He told Sky Sports News HQ: It's very interesting how it has been handled. I think the RFU, from what I have been led to believe, have tried their hardest with Bristol to come to an amicable conclusion.
"They even went as far as discussing job share with Bristol, lending him back to Bristol should they make the play-offs at the end of the season and allowing him to fulfil some role that Bristol would be happy with.
"But I don't think Bristol were prepared to play ball. They are in a position where they know that Eddie Jones wants their man and that puts them in a rather strong negotiating position.
"The unfortunate person in the middle of this would be the most honourable of the lot which is Steve Borthwick, who is nothing other than the most loyal bloke you would want to come across.
"He seems to have been put in an invidious position by his club who realise that their asset is the most wanted. Eddie Jones wants him, Eddie Jones will only go with him as his forwards coach and therefore, as they are holding his contract, they have put him in a position where, he really wouldn't have wanted to have done it, but he has reluctantly handed in his notice and, as of tomorrow (Wednesday), he's an England coach."
In the meantime Jones is pressing ahead with his recruitment, with Saracens' defence coach Paul Gustard a confirmed target.