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AFTER retaining captain and openside flanker Phil Waugh, the NSW Waratahs will aim to re-sign as many players as possible before embarking on their three-game tour of South Africa on Saturday.
Sources close to the Waratahs confirmed yesterday that Waugh would stay in Sydney.
While Waugh is yet to put pen to paper, it is understood he has reached an agreement with the ARU and NSW for another two years, which will enable him to chase a Super 14 title and a place in the Wallabies' 2011 World Cup squad.
An official announcement is expected today.
The Waratahs will now set their sights on re-signing Al Baxter, Matt Dunning, Tatafu Polota-Nau, Daniel Halangahu, Dean Mumm, Brett Sheehan, Kurtley Beale and Rob Horne, while negotiations with Western Force outside back Drew Mitchell are continuing.
NSW is also competing with Queensland for the prized signature of the Wallabies blindside flanker Rocky Elsom. He is playing for Irish province Leinster, which is also keen to re-sign him.
The ARU is eager to have Elsom back in Australian colours in June, but contracts are bilateral agreements with the national and state unions.
Elsom does not want to be rushed into making a decision on which province to play for.
The Waratahs are likely to lose Sheehan to the Force, but it is understood the Perth-based club is holding off while it assesses its halfback, Josh Valentine.
Valentine has been in good form in recent weeks and there is speculation the Brumbies are also interested in him.
While Valentine is certainly "on the radar" in Canberra, the Brumbies have indicated they will focus on retaining their existing halves, Josh Holmes and Patrick Phibbs, before looking elsewhere.
Waugh had considered playing overseas after the ARU reduced his top-up money, but it is believed his management has delivered sufficient third-party sponsorship at the Waratahs to satisfy him.
The re-signing of the influential Waugh will give NSW optimism that it can break through for its first Super rugby title within a few years.
Waugh's decision to stay in Australia also means George Smith and David Pocock will have a fight on their hands for selection in the national squad.
It is understood Waugh had been speaking to Welsh team Ospreys, who will be coached by Australian Scott Johnson next season.
There was also speculation another Welsh team, the Scarlets, were interested in Waugh as a possible replacement for former All Blacks openside flanker Daniel Braid, who sustained an achilles tendon injury while playing for Queensland against the Lions in Brisbane last Saturday.
Braid is expected to be sidelined for six months and the Scarlets have indicated they will activate the provision in his contract regarding a medical test before deciding whether to continue with the deal.
Poutasi Luafutu will replace Braid for the Reds' match with the Blues in Albany on Saturday.
Winger Peter Hynes has been ruled out with a knee injury and will be replaced by former Australian sevens representative Luke Morahan.
Second-rower Van Humphries will be rushed back into the starting line-up at the expense of Adam Byrnes after recovering from a shoulder injury.
The Brumbies' injury woes continue with inside back Gene Fairbanks straining his groin at training yesterday, placing him in doubt for the match with the Hurricanes in Wellington on Saturday.
Fairbanks was set to start at five-eighth in place of the injured Christian Lealiifano, but the crucial play-making role is now likely to be entrusted to rookie Matt Toomua.
Former Force second-rower Scott Fardy has been brought into the Brumbies' squad as cover for lock Ben Hand, who has a hamstring injury.
http://www.theaustralian.news.com.au...015651,00.html