Brian Ashton was today rewarded for leading England to the 2007 World Cup final and their best RBS 6 Nations finish in five years with a demotion.
Ashton has been formally relieved of his position as head coach and offered his old job at the Rugby Football Union's national academy.
The 61-year-old was squeezed out of the senior national set-up when the RFU's management board confirmed Martin Johnson's appointment as England's new team manager.
There was no immediate indication whether Ashton, who has remained steadfastly and proudly silent through a tumultuous month-long process, would accept the RFU's offer.
Chief executive Francis Baron said tonight: ''I am personally pleased that Brian has been offered a senior post within the RFU which I very much hope he accepts. He still has much to offer England rugby.''
Ashton's demotion comes just four months after he was re-appointed by Rob Andrew, the RFU's elite rugby director, following a two-month review into England's World Cup performance.
Ashton guided England into the final despite taking charge only 10 months earlier when Andy Robinson was sacked on the back of eight defeats in nine Tests.
There were concerns within the RFU that England's success had been down to senior players taking charge rather than Ashton's own influence.
But he received Andrew's support in being re-appointed with a public promise to be given the team manager he wanted - someone to help with the off-field burden but who would not get involved in rugby affairs.
However, the ground shifted significantly when senior officials at the RFU became concerned at England's inconsistent performances during the Six Nations.
Last month, Andrew was given the green light to recruit Johnson as a hands-on team manager - and that ultimately meant no place in the set-up for Ashton.
Andrew said tonight: ''I would like to thank Brian for the job he has done in difficult circumstances.
''He is an outstanding coach and deserves enormous credit for leading England to a second successive Rugby World Cup final last year and securing the runners-up position in this year's Six Nations.
''Whilst Brian is naturally disappointed that he will not have a role in the new senior structure, I believe the new post that we have offered him as head coach of the national academy is ideally suited to his special talents and expertise.''
Ashton was academy chief between 2002 and 2005, where he helped develop some of England's current rising stars like Danny Cipriani, Tom Rees and James Haskell.
Human resources and legal experts believe Ashton could have a strong case for constructive dismissal, should he choose to go down the litigation route.
Former England hooker Brian Moore, a qualified solicitor, called for Baron's head and described the RFU's treatment of Ashton as ''an absolute disgrace''.
He said: ''What has happened to Ashton is illegal. It is the clearest constructive dismissal I have ever seen.
''Irrespective of that, you don't do this to people. You don't treat your top man like this.
''How can they offer him another job? What could be of equal rank to the head coach?
''You go from being the top man to being coach of the academy - I don't think so.''
Ashton's record of 12 wins from 22 Tests was better than both his predecessors, Andy Robinson and Sir Clive Woodward, over the same period.
Robinson was sacked in December 2006 after managing just nine victories. Woodward enjoyed 10 wins and two draws in his first 22 Tests and, given time and resources, he went on to build a World Cup-winning team.
''It is short-termism,'' Moore added.
Johnson has been given a contract up to the 2011 World Cup but Baron warned only last week that the RFU are not financially in a position to build a team of coaching specialists such as Woodward assembled.
Woodward was reluctant to comment on the situation today other than to give a brief insight into Johnson's character by declaring: ''He is not a 'yes' man.''
Johnson will take charge from July 1 with Andrew to take the role of acting team manager for the two-Test summer tour of New Zealand.
The rest of England's senior coaching staff - John Wells, Mike Ford, Graham Rowntree and Jon Callard - remain in place.