Sir John Kirwan has decided to step down as Blues coach.

John Kirwan has endorsed Tana Umaga to succeed him as Blues head coach after announcing his resignation.

In a Friday morning press conference, Kirwan announced his decision to step down as coach saying he "totally loves this club", but understood in the best interests of the Super Rugby franchise it was best for him to step down.

He said it was a "results-based industry" and "when you're a coach you are here to bring results and I didn't bring those and I always said to fans and players that if I'm not delivering that then it's right that I step aside".

Phil Walter/ Getty Images Sir John Kirwan announces his resignation as Blues head coach at a press conference in Auckland.

Speculation has mounted about his successor amid reports former All Blacks captain Tana Umaga will take over the job for the next three years. Kirwan endorsed him as a great choice to take on the Blues role.

"I think Tana is an outstanding young man," Kirwan said.

"He has a similar pathway to me, he is a guy who I think would be one of the candidates who would be fantastic for here. He is from the wider region, he is a good man."

1 of 15 Getty Images Sir John Kirwan announces his resignation from the Blues as head coach at a press conference called by Blues CEO Michael Redman. 2 of 15 Hannah Peters/ Getty Images Blues coach Sir John Kirwan thanks the crowd for their applause after his team beat the ACT Brumbies at Eden Park in April 2015. 3 of 15 Phil Walter/ Getty Images Blues coach Sir John Kirwan at a training session in April 2015. 4 of 15 Hannah Peters/ Getty Images Coach John Kirwan congratulates captain Jerome Kaino after the Blues beat the Brumbies in April 2015. 5 of 15 Hannah Peters/ Getty Images Blues coach Sir John Kirwan congratulates Ihaia West after winning the round nine Super Rugby match between the Blues and the Brumbies at Eden Park in April, 2015. 6 of 15 Hannah Peters/ Getty Images John Kirwan shows he can still kick it, with a punt at a Blues training session at Unitec Field in Auckland, in April 2015. 7 of 15 Fiona Goodall/ Getty Images John Kirwan with Ma'a Nonu at the 2014 announcement the All Blacks midfielder would be leaving the Blues and returning to the Hurricanes. 8 of 15 Martin Hunter/ Getty Images John Kirwan chats with Richie McCaw before a 2014 clash between the Blues and Crusaders in Christchurch. 9 of 15 FAIRFAX NZ John Kirwan competes in a CPR exercise at the Westpac Chopper Challenge in 2014. 10 of 15 Jason Oxenham/ Getty Images Sir John Kirwan leads a Blues training at Unitec in Auckland on April 30, 2014. 11 of 15 Phil Walter/ Getty Images Blues coach Sir John Kirwan announces in 2014 the release from contract of failed rugby league convert Benji Marshall. 12 of 15 ROBYN EDIE/ Fairfax NZ John Kirwan sporting some bright blue shoes ahead of a Blues-Highlanders clash in Dunedin in 2013. 13 of 15 Peter Meecham/ Fairfax NZ Blues voach Sir John Kirwan hugs Blues flanker Steven Luatua at Eden Park in 2013. 14 of 15 Hannah Johnston/ Getty Images Blues coach John Kirwan at a team training with 2013 technical advisor former All Blacks coach Graham Henry. 15 of 15 Sandra Mu/ Getty Images John Kirwan at the July 2012 announcement he would coach the Blues.

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Kirwan's three-year tenure at the Blues was not a successful one for the Auckland-based franchise.

Under the 73-test All Blacks wing, the Blues won just three matches this year, finishing 14th of 15 teams. The team has won just 35 per cent of its games under him.

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Kirwan has decided to make a clean break from the Blues, despite an earlier proposal made to the board in which he would carry on in a new role.

He said on Friday he had reconsidered over the past few days having talked with his family, colleagues and friends.

"I had a chance to take a breath and reflect about the situation, my future and above all my love of this Blues club and the players," the 50-year-old said.

HAGEN HOPKINS Former All Blacks captain Tana Umaga is likely to be the new head coach of the Blues.

"People who know me well know that I do not walk away from a challenge and that was what was driving me because I know what has been set-up in terms of organisational structure in the last two years."

The Blues board continues to dither with no announcement on Kirwan's replacement, but has said in a statement that an announcement about the new coaching structure would be made "as soon as practicable".

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Blues chief executive Michael Redman said at the announcement of Kirwan's exit on Friday morning that the organisation owed much to the rugby great who would leave a legacy at the club.

"When JK arrived three years ago he had the courage to shine a spotlight on the areas within the organisation that were in serious need of an overhaul," Redman said.

"The playing record of the Blues under JK has not reflected his work and the determination he had to create a pathway for sustainable success going forward, based on strong values.

"That reform is now unstoppable and JK has to take a significant amount of the credit for it."

That statement won't sit well with Blues fans, who have endured endless assurances about structures, development plans and bright futures over the past three seasons.

New Zealand Rugby chief executive Steve Tew offered some support for the departing Kirwan.

"John has given his all for the Blues," Tew said.

"He has worked very hard to try and turn the team's fortunes around in what is one of the toughest rugby competitions in the world and we appreciate the contribution he has made.

"Unfortunately the results have not been as we all would have wanted and he has made the call to step aside to allow for a fresh start for the team in 2016. We support that decision, thank JK sincerely and wish him all the best for the future."

THE UMAGA FACTOR

Former All Blacks captain Tana Umaga was understood to be in talks with the Blues to take on the head coach role in a three-year deal. While nothing has been formally signed, those close to Umaga believe he will put pen to paper within the next 48 hours.

It is believed Umaga has told Counties Manukau he will be joining the Blues next season with an out clause thought to be in place that allows him to progress to a Super Rugby post despite being contracted to the province until 2016.

Several sources confirmed Umaga had agreed in principal to a coaching structure that will see him have the final say around team selection and responsibility for on-field performance.

To avoid any misunderstanding, it was understood Umaga made it clear he wanted control of the team and Kirwan was believed to have agreed to the new structure.

The messy Blues board room dispute between private investors and the Auckland Rugby Union is yet to be resolved but it is understood that stoush will not get in the way of Umaga's likely appointment being pushed through.

With assistants Grant Doorey and Isa Nacewa leaving the franchise, the Blues are expected to add one further coach to their ranks alongside forward advisor Glenn Moore, who was this week promoted to take over the Black Ferns.

Signing Umaga would represent a major coup for the Blues at a desperate time when their support base has never been more alienated. The Blues have just had their worst season in the franchise's 20-year history, winnning just three of 15 games.

Recruitment for 2016 has been almost non-existent but if Umaga commits they will finally be able to move forward and attempt to contract players outside their current squad.