The French side were surprisingly beaten by Castres in the French Top 14 semi-finals on Saturday, adding to the pain of the previous weekend’s Heineken Cup loss to Toulon.
Since it emerged two weeks ago that Cotter was in the frame for the Scotland job, the New Zealander has been under pressure in France to confirm whether he would stay or go.
However, the 51-year-old still has another year left on his contract and today's Scotsman reports that the SRU has told Clermont they do not intend to pay compensation, despite being prepared to pay close to £1million in salary and bonuses in a deal for Cotter going beyond the 2015 World Cup.
But the wealthy French club, backed by Michelin, are refusing to allow him to leave a year early. So, with their season having ended at the weekend, Cotter revealed yesterday that he will leave Clermont, but only after next season, and pledged to go one better for the club supporters and win the 2013-14 Heineken Cup.
He said: “We are disappointed not to be able to bring back the European Cup. We got very close to it. But we will bounce back and we’ll get this European title next season in my last at the club. When I arrived, we were eighth [in the Top 14], and now we have played six finals, ten semi-finals, won a European shield, the Top 14 shield and so I can’t wait for the new season.
“The club is in good health and I always said I wanted to leave the club in a better state than I found it. It will happen.”
Cotter was identified by the SRU as their main target after his profile rose with his involvement in the All Blacks’ and England head coach recruitment processes in 2011-2012. It now appears that he agreed a move to Scotland some time ago.