George Gregan has been sacked as Wallabies captain for the 2007 international season, ending his record run as Australia's longest serving test skipper.

The 34-year-old scrumhalf held his place in the Wallabies squad for this season's internationals but was stripped of the captaincy after the selectors named two co-skippers in Stirling Mortlock and Phil Waugh on Sunday.

Australia coach John Connolly said Gregan's dumping did not rule him out of captaining the side again but the management preferred the shared leadership approach.

"We just thought it was the way to go," Connolly told reporters.

"We've tried very hard to spread it around and I think it is the way forward.

Gregan said he supported the change even though he indicated last year that he wanted to lead the team to the World Cup before retiring from the international game.

"It's great for both Phil and Stirling to increase the leadership right throughout the group," Gregan said.

"(This) is something John spoke about and the team has identified as an area we really need to strengthen.

"You need probably half a dozen good leaders in your group."

Gregan has captained Australia a record 58 times since taking over from John Eales when he retired in 2001, but rumours about his impending demotion had been circulating for weeks.

He has been increasingly criticised over the past few years for his performances, prompting mounting calls for him to stand down and make way for a younger scrumhalf.

Gregan's harshest critics said he seemed to be more interested in self-preservation than getting involved in the heavy contact that is a feature of the sport.

Gregan opted to skip last season's end of season tour of Europe to save himself for the World Cup, but that decision may have proved his undoing.

Mortlock and Waugh both captained the team and Matt Giteau made a brilliant impression after at scrumhalf.

Giteau normally plays inside centre but performed so well that Connolly said he was seriously considering playing him at scrumhalf this season and moving Gregan to the reserves' bench.

Connolly said he was still torn about where to start Giteau but planned to try both at scrumhalf in the series against Wales which starts on Saturday.

"We're still resolving the halfback and inside centre positions and by all means, George is still in the frame," Connolly said.