Andy Hunter is the new Otago co-coach and his appointment will be formally announced by the Otago Rugby Football Union today.
Otago Rugby Football Union chairman Wayne Graham, although failing to confirm Hunter as the new co-coach, said Latta was not retained as he did not have the skill set to take the team where the union wanted it to be.
Latta, who was seen by many as the logical man to coach Otago after the 2009 season when Steve Martin stood down, now appears to be on the outer with the union.
He was passed over as head coach when Phil Mooney was appointed at the end of 2009 but a couple of months later accepted the job as assistant coach.
Otago, though, had a disastrous season in 2010, finishing dead last in the ITM Cup and winning just two games.
After a lengthy review by the board it was decided to keep Mooney but appoint a co-coach.
Latta was keen for that role but was told late last week he would not get the job.
Latta yesterday said he wanted to meet union officials to see where he stood.
"I want to know what the issue is and where my future lies. It feels like I have been made scapegoat for the whole season," Latta said.
"All I want is a bit of honesty really. A bit of transparency in the process. If they could point to what I did wrong and where I failed then that would be fine. But I've never even heard from them about my review. Never told what I did wrong.
"And in the most of the key areas I did all right. I'm gutted about the way everything has happened."
Latta, who played 161 games for the union, was contacted last month to come to the union offices in Dunedin to discuss the coaching job.
But he was on holiday in the North Island and told the union to send an email and he would reply.
"I never got anything from him. The only call I got was last Friday from Laurie Mains when I was told I would not get the job. The thing is they can't afford to get rid of Phil so they don't want me.
"We're a team and I've always backed him. I've got my family, I've got my work and lots of other things to do with my life. But I do care about Otago rugby."
He felt Otago rugby lacked a long-term vision.
Otago Rugby Football Union chairman Wayne Graham said the union still wanted to have Latta involved in Otago rugby.
But after the review was carried out it was felt the union needed complementary coaches.
"The reason David was not retained for his position was he did not have the skill set we needed to get where we wanted to get," Graham said.
He said the union wanted to retain Mooney as co-coach but could not also go with Latta.
"If we did not make a change then we would have got the same result.
"We think the changes we have made are a step in the right direction."
Graham said he had spoken to Latta before Christmas and told him they wanted a co-coach who came from the province and had different skills than from the current duo.
He said Latta was still an important part of Otago rugby but he needed to go to the B side or Otago Country to work on his coaching.
Graham could not confirm Hunter was the new co-coach as contracts had not been signed.
When asked if Mooney was only retained as the union could not afford to pay him out - he still has another year to run on his contract - Graham said the union had decided to go with Mooney and needed a coach with complementary skills to join him.
Latta did not fit that mould.
Tony Brown was returning as a technical assistant and was due back in the country next month.
Hunter, who has coached Otago Colts and Otago B and club sides, was at Otago squad training last night.
He declined comment.
Mooney also declined comment.
Hunter is the principal of Balmacewen Intermediate and co-coached Otago B last year when the team won the South Island championship.
