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Gatland has admitted he is "very interested" in filling the void left by Gareth jenkins who was sacked after Wales' disappointing Rugby World Cup campaign.
The former Ireland and Wasps boss, who is currently in charge of New Zealand side Waikato, has met with Welsh Rugby Union officials to discuss the position.

Gatland, who watched Wasps' EDF Energy Cup clash with Gloucester yesterday, said: ``We have a few things to work out.

``Nothing is finalised but we are fairly close. They are fairly keen to have me and I am very interested in the job.

``The challenge is appealing. The scene is a lot like New Zealand, it's a goldfish bowl.

``I loved Britain. I had a fantastic time here and really enjoyed it.

``If it comes off, I could not be joining at a better time. They are 10th in the world and the only way is up.

``And what a start, against England at Twickenham in the Six Nations.

``I hope to have made my mind up before I return to New Zealand next week. I have a few things to discuss with my family."

Newspaper reports at the weekend revealed that Gatland met with Wales Rugby Union (WRU) chief executive Roger Lewis and chairman David Pickering in Cardiff last week.

An eyewitness to the meeting told the Wales on Sunday newspaper, "They were deep in conversation but didn't seem to mind that they could be seen. They were sat right next to the window and chatting like they were old friends.

"Roger Lewis and Gatland were the two who appeared to be really hitting it off. It seemed quite informal -- they were all in casual clothes and when they left Lewis and Gatland were still talking away as they walked out."

The New Zealander is reported to be on a three-man shortlist for the job and an announcement is expected to be made before the end of the month.

Jake White, South Africa's World Cup-winning coach, and Crusaders mentor Robbie Deans, who recently announced his desire to coach the All Blacks, are understood to be the others on the list.

Both men have distanced themselves from the Wales job publicly this week but are still in the frame for the job.

Lewis declined to comment on whether Gatland was now the WRU's top target.

"We have talked to people this week," Lewis said.

"We now have a shortlist of three candidates for the role."

Gatland recently relinquished his role as assistant coach of Super 14 franchise the Chiefs.

The former Ireland coach, who lifted the Heineken Cup with London Wasps, is being viewed as the perfect fit for Wales' new era.

If Gatland is appointed he will be the third Kiwi coach in less then 10 years to coach Wales and follows in the footsteps of Graham Henry and Steve Hansen.

He is understood already to have spoken to New Zealander Andrew Hore, the favourite to fill the WRU's elite performance director role.

Hore's position has reportedly been complicated by a late bid by his current employers the New Zealand Rugby Union to keep him at home.