Michael Cheika has been appointed as the new Wallabies head coach on a three-year contract in the wake of Ewen McKenzie's resignation from the position.

Cheika, who guided New South Wales to the 2014 Super Rugby title, will take charge of the Wallabies for their upcoming European tour with the squad departing Australia on Friday.

He will remain as Waratahs coach in 2015 but will relinquish the role following the Super Rugby season.

Cheika, who faced a media conference in Sydney on Wednesday, described his appointment as a "real honour".

"I never got to play for the Wallabies so to have the opportunity to coach the Australian team and have that responsibility of that on behalf of the Australian rugby supporters is touching for me," he said.

Cheika, who is the third Wallabies head coach in 15 months, does not believe he has accepted a salvage mission less than 12 months out from the beginning of the World Cup to be hosted by England.

"I don't think it's a rescue job whatsoever ... everyone needs to clear their heads a little bit, remember what we're here to do," he said.

Cheika believes the Wallabies have the talent to make an impact at the World Cup.

"There's a lot of players that still need to rise to their full potential and that's the job of the coach," he said.

Cheika says discussions with the ARU had taken place over a couple of days, as he felt it was important they could show confidence in each other.

"At the end of the day it's the opportunity to coach your country," he said.

"When that opportunity calls it's the one that says [to me] I'm going to come and see if I can help."

Cheika made a point of acknowledging former Randwick team-mate McKenzie, both for his work in charge of the Wallabies and his support while he had been coach of the Waratahs.

Australian Rugby Union (ARU) chief executive Bill Pulver says Cheika was the only candidate he spoke to about taking over from McKenzie.

Pulver is confident Cheika will get the Wallabies players to play with "plenty of heart, conviction and pride in the jersey".

"We believe Michael Cheika is the man to lead Australia to victory at next year's World Cup," he said.

The Wallabies will begin their European tour with a fixture against the Barbarians at Twickenham on November 1 (UK time), before Tests against Wales, France, Ireland and England.

Kurtley Beale, who will face an ARU code of conduct tribunal on Friday, was not included in the 33-man squad.

He outlined he would not be making comment on Beale's future in rugby union ahead of Friday's hearing.

"I won't be answering any questions on that today ... I don't want to prejudice anything that's going to happen with Kurtley," he said.

The Wallabies tour squad includes Matt Toomua and Ben McCalman, who return from injury, but is missing Scott Fardy, who is sidelined after undergoing knee surgery this week.

Uncapped Rebels back rower Sean McMahon has been named in the squad, along with other potential debutants Tetera Faulkner, Kyle Godwin, Henry Speight and Tom English.

Cheika makes changes to coaching staff

Cheika has already made changes to the Wallabies' coaching staff, with his Waratahs assistant Nathan Grey included alongside existing forwards coach Andrew Blades.

Nick Scrivener and Jim McKay, who worked under McKenzie, have had their contracts terminated.

Cheika, 47, was a prominent club player with Randwick during the late 1980s and early 1990s, while he also represented Australia at the under 21 level.

He later coached Randwick and continued his career overseas, highlighted by leading Irish provincial side Leinster to its 2008/09 Heineken Cup victory in Europe.

Cheika joined the Waratahs for the 2013 Super Rugby season, winning the title in his second year in charge.

McKenzie announced his resignation following the Wallabies' 29-28 loss to New Zealand in last Saturday evening's Bledisloe Cup Test at Lang Park.

He had informed Pulver of his decision on Saturday morning.

"Ewen said he felt he was going to struggle to retain the level of respect from the playing group and support staff, in my view, because of the extraordinary character assassination he has had to deal with the last two weeks," Pulver told a media conference on Saturday evening.