The Australian Rugby Union is confident it won't have to resort to appointing a project manager to set up the new Melbourne franchise, and is hopeful private owners will take full control next month.

Two potential investors, Craig Dunn and Ray Evans from the VicSuper15 group, have walked away after failing to reach a financial agreement with the ARU over the Melbourne entity, which will join the expanded Super Rugby competition in 2011.

However ARU deputy chief executive Matt Carroll said negotiations were continuing with the other prospective owners, including media buyer Harold Mitchell and Sydney-based mining magnate Kevin Maloney.

With decisions on staffing up to the owners, Carroll hoped the franchise would have a head coach and chief executive in place within weeks of the hand-over.

"We're in negotiations and discussions at the moment with Harold Mitchell and Kevin Maloney is still very interested," Carroll said.

"Things seem to be headed in the right direction and we're very positive that early in the new year the owners will be in place and they'll be able to get on with the job of making some appointments."

The move to get a Melbourne-based team in the expanding competition has been beset by acrimony and in-fighting from the outset of the bid process.

Carroll said if the remaining ownership issues couldn't be resolved early in the new year, an ARU project manager would be appointed.

"If for any reason it got delayed we wouldn't be appointing a chief executive but we would put a project manager in place and we already have a list of potential head coaches and we might start to have a look at those as well."

Evans, a close friend of European Cup-winning Leinster coach Michael Cheika from their Randwick club days, claimed to have Cheika on board for the Melbourne role.

It remains to be seen if Cheika, who is still fulfilling his duties with the Irish club, would take on the Melbourne job without the Evans connection.

Despite the short time-frame to get the yet-to-be-named franchise up and running, Carroll wasn't concerned.

"A lot of the players they'll be looking to recruit won't be available until after the end of their season in May, if they're northern hemisphere players, and if they're local players they can't be recruiting any contracted players until after the end of Super 14 rugby."

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