Bates was interviewed for the Scotland coaching role in 2005

The 44-year-old spent eight years as first-team coach at Newcastle before being released by the club in 2003.

Bates took charge of Border Reivers later that year, but the Scottish regional team is being disbanded at the end of the season.

"I believe he has a big contribution to make," said Newcastle director of rugby John Fletcher.

Interview: Newcastle Falcons coach Steve Bates

"He's an innovative coach who I've long admired, and someone we know well from his time with the club.

"Players who have worked with him have nothing but good things to say.

"His appointment was very much driven by myself from day one purely because I hold him in such high regard.

606: DEBATE Give your views on Steve Bates' appointment

"I have felt for some time that we were one light on the coaching team, but was adamant that we would not rush in to an appointment until the right candidate became available."

The former England scrum-half joined Newcastle with former Wasps colleague Rob Andrew in 1995 and guided the club to the inaugural Premiership title in 1998 and the Tetley's Bitter Cup in 2001.

Bates, a former teacher, also alerted Newcastle to the potential of one of his pupils - Jonny Wilkinson, who joined the Falcons as an 18-year-old in 1997.

He took the Reivers into the Heineken Cup and also coached Scotland A to victory over England Saxons and into the Churchill Cup final last year.