Former France captain Fabien Galthie has been granted a reprieve that has secured his position as Montpellier coach, sources close to the club said Sunday.
Montpellier head coach Fabien Galthie supervises a warm- up session prior to the European Rugby Champions Cup game against Bath at the Yves-du-Manoir complex in Montpellier, southern France on December 5, 2014
Earlier in the day, press reports claimed the 45-year-old was on the verge of leaving following a run of six straight defeats in all competitions.
But after interviewing various senior figures at the club, Montpellier owner Mohed Altrad has decided to keep faith with Galthie, the former Stade Francais coach and advisor to the Argentina national side.
Montpellier have mostly thrived under Galthie's tutelage since he joined in 2010 but their recent troubles culminated in a humiliating 30-5 defeat at home to English outfit Bath on Friday in the European Champions Cup.
Montpellier have already seen forwards coach Mario Ledesma leave following another humbling home defeat (25-10) to Brive in the French Top 14 a month ago.
Galthie, who was criticised by former France coach and now head coach at Toulon Bernard Laporte for going to a friend's birthday party in South America in October despite his side being in action that same weekend, met with Altrad after the Bath game.
According to the usually well-informed Midi Olympique's website, the two reached agreement for Galthie to step down with two and a half years still to run on his current contract.
During Galthie's time, Montpellier reached the Top 14 final in 2011 and the semi-finals last season.
He had even been tipped to succeed current France coach Philippe Saint-Andre after next year's World Cup, should the latter leave the role.
Montpellier's recent fortunes have not been helped by France international fly-half Francois Trinh-Duc breaking his tibia in early October, ruling him out of action till the end of January.
But during their losing spell, their three league defeats all came against sides battling against relegation, while the other three reverses were admittedly against the cream of Europe.
The lowest point seemed to come a month ago when Brive gained their first victory at Montpellier in the top flight since February 2012.
Galthie, who captained France to the 2003 World Cup semi-finals in his last campaign for his country, expressed his frustration at the time of the Brive defeat.
"There is a feeling of powerlessness, of not succeeding and failure," he said.
"We are bored. We are not happy, and are not making other people happy.
"I am sad for the board, for the sponsors and for the president who do everything possible so the club can be a great and beautiful side."