RugbyJP.com reports that former Wales and Lions boss Warren Gatland has been lined up to replace Laidlaw, who only took over as head coach last season.
Borderer Laidlaw won 76 caps for Scotland between 2010 and 2019 but retired from Scotland duty following the Rugby World Cup in Japan.
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He played for the club – then known as the Shining Arcs – between 2020 and 2023 before joining the coaching staff.
Laidlaw became the league’s youngest head coach when he was appointed aged 38 last summer, following the departure of South African coach Johan Ackermann.
However, they won just three of their 18 league games and only avoided relegation with a narrow win over Toyota Industries Shuttles Aichi in a play-off.
Now it is being reported that Gatland, who led Wales to four Six Nations titles including three Grand Slams between 2008 and 2019, has been lined up to take over.
Warren Gatland will reportedly replace Laidlaw (Image: SNS) It would be his first permanent job since he stepped down as Wales head coach amid a 14-match winless streak during this year’s Six Nations.
The New Zealander, 61, has worked as an advisor to Uruguayan side Penarol, who won the Super Rugby Americas title in June.
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But it is unclear what lies in store next for Laidlaw.
In an exclusive interview with our sister title Scotland Rugby News last summer, the Jedburgh-born former scrum-half admitted he had no long-term coaching plan.
The 2017 British and Irish Lions tourist has long been touted as a potential future Scotland coach. His cousin Clark, currently head coach at the Hurricanes in New Zealand, could also be a contender for the Scotland job in the future.
“The future will be what it will be.”
However, Scotland Rugby News understands a return to Scotland is not on the cards for the former Edinburgh Rugby captain.
Urayasu D-Rocks, whose star-studded squad included South Africa number eight Jasper Wiese, Australia centre Samu Kerevi and controversial ex-Wallaby Israel Folau, has not made any comment on the reported coaching change.