MASTER coach Wayne Bennett has announced he will coach the Newcastle Knights on a four-year deal beginning in the 2012 NRL season.

He advised South Sydney by telephone this morning he would not be taking up their offer.

The seven-times premiership coach said his decision was based around the vision and passion of new Knights billionaire owner Nathan Tinkler combined with the lifestyle offered by Newcastle and the Hunter region.

It's believed he phoned rival contender South Sydney on Tuesday morning to inform them of his decision to go to the Knights after finishing up with NRL premiers St George Illawarra at the end of this season.

"I sat down with Nathan (Tinkler) and was struck by his passion and knowledge of rugby league," said Bennett in a statement issued by the Tinkler Sports Group.

"Private ownership appeals to me. I like it. This guy wants to take Newcastle to another level.

"He wants our game to capture the imagination of the Hunter like never before - for the Knights to be the benchmark of rugby league in this country.

"That is the type of challenge that appeals to me.

"The Knights have already won two premierships and have been a great club despite struggling with their finances. And that's where Nathan Tinkler comes in."

The move means Bennett will have the chance to become the first coach to win premierships with three different clubs, having won six with Brisbane and one with the Dragons.

Bennett said the country NSW lifestyle appealed to him after living happily in Wollongong while coaching the Dragons and previously in Queanbeyan with the Raiders in 1987.

Bennett said he hoped current Knights coach Rick Stone would remain at the club and work there with him.

Bennett's signature caps a big fortnight for the Tinkler Sports Group which secured ownership of the Knights with 97 per cent members' support.

"We are building something really special for the entire community and are thrilled to know that Wayne Bennett will be part of it," said Tinkler Sports Group chairman Ken Edwards.

"Wayne's appointment confirms exactly what Nathan has been saying, that the Hunter region has developed dramatically and now the best do not have to go to Sydney, Melbourne or Brisbane to prosper, they can now stay or join us in the Hunter.

"This is a major step for the region as we continue to build community pride and above all, further expand the club's existing policy to provide a pathway for all juniors to have the opportunity to play for the Knights.

"What excites everyone at the club is Wayne's commitment to work closely with the Newcastle Rugby League, to ensure that a professional structure is in place for young player development and a full program for local coaches.

"This is a genuine revolution for everyone involved in rugby league from Newcastle up to the Queensland border.

TSG chief executive Troy Palmer praised the job being done by the Knights current head coach Rick Stone.

"It is business as usual and Rick and his team will be given everything needed to achieve the very best possible outcome for the Knights this season," Palmer said.

"Rick has done and is doing an outstanding job with the NRL team and has developed a strong culture throughout the club.

"Wayne will sit down with Rick in the near future to discuss an on-going relationship."

Originally published as Bennett signs with Knights