CHRIS Anderson is finishing as coach of Newport Gwent Dragons after being told by the board that they are not taking up the option of a second season on his two-year contract.

Anderson decided a month ago he wanted to stay on for a second year after the Dragons took a gamble by appointing the former Australia rugby league coach with no experience in union.

But a statement issued to the Argus by the Dragons board this morning says: "After extensive discussions between the board of directors of Newport Gwent Dragons and Chris Anderson it has been mutually agreed that the option to extend Chris' contract for a further year will not be exercised."

It is not known whether Anderson will leave imminently or at the end of the season after Wednesday night's board decision.

Though the Dragons are consolidating their position and planning for the future - a future without Tony Brown, the benefactor who has backed Newport and the Dragons for the past five years - there is a lot more to it than that.

Initially under Anderson the Dragons appeared to prosper with some cracking early season victories, like the home trouncing of Leinster and away wins against Ulster and Glasgow.

But the cracks soon began to appear, results changed and the Dragons' form deteriorated badly.

They lost their unbeaten Celtic League record at Rodney Parade when they fell to Edinburgh and they tumbled out of the Heineken Cup when they had a pretty favourable draw.

Their run since mid-November reads: played 12, won four, lost eight. That hardly makes impressive reading and even though they were without their leading players for some games against top opposition, notably the last two in Dublin and Dubai, that was not the case in the Heineken Cup.

The Dragons have had a much stronger team this season than last, yet they have under-achieved badly. Last year they were a whisker away from winning the Celtic League title whereas this time they were out of it by Christmas.

Anderson has brought certain motivational assets to the squad from his rugby league days, but by the turn of the year it was obvious the Dragons were going nowhere fast.

The Dragons board are determined the region will continue to flourish, as shown by contracting leading Welsh players like Michael Owen for another three years, but they have to rationalise and be prudent with Tony Brown no longer involved from next season.