Premiership-winning NRL coach Steve Folkes is out of the running for the Penrith job after linking with St George Illawarra as an assistant from 2012.

Currently the Wests Tigers' high performance manager, Folkes had been among a host of candidates linked to the Panthers who will part ways with Matt Elliott after this season.

Reports suggest master coach Phil Gould will take on an overseer's role at Penrith from next year, while former Dragons mentor Nathan Brown and Panthers assistant Steve Georgallis appear to be the front-runners to replace Elliott as head coach.

NSW coach Ricky Stuart is also being linked to a move to the foot of the mountains.

Test coach Tim Sheens knocked back a massive offer from Penrith to remain at the Tigers two weeks ago.

Folkes, who won the 2004 premiership at the helm of Canterbury, will work under incoming Dragons coach Steve Price for the next two years.

"The opportunity to provide coaching support to an emerging head coach like Steve Price appealed to me a great deal," Folkes said in a Dragons statement.

"I'm really looking forward to taking on this new challenge.

"I have very much enjoyed working with great coaches Tim Sheens and Peter Gentle, their support staff and the players.

"I have learned a great deal."

Dragons chief executive Peter Doust added: "Steve Folkes is an experienced coach and quality individual whose skills and experience will complement our programs in 2012 and beyond."

A former Test and Bulldogs player, Folkes stepped down from the club at the end of the 2008 before taking up a stint as the conditioner for the West Indies cricket team.

He will officially begin his role at the Dragons when the squad begins pre-season training for 2012 in November this year.

"Steve has been a tremendous help to me," Sheens said.

"His expertise and knowledge of the game has been second to none.

"But this is an excellent opportunity for him and the club wishes him all the best.

"That said, we still have him on board for this season and there is definitely a job to do.

"I'm sure he'd love nothing more than a Wests Tigers premiership come the end of the season."

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