Wallabies boss Michael Cheika has been named World Rugby coach of the year after completely transforming Australia's fortunes over the last 12 months and guiding the team to the Rugby World Cup final.

Cheika won the award ahead of All Blacks coach Steve Hansen at a glitzy awards ceremony in London on Monday morning (AEDT).

He received a rousing ovation when he collected the honour.

Cheika helped lift the Wallabies from No 6 in the world to No 2 in 2015, winning The Rugby Championship then guiding Australia on a fairytale run into the World Cup final.

Cheika won 10 of 12 Tests in 2015, with the only losses coming against the world champion All Blacks.

WORLD RUGBY'S AWARD WINNERS FOR 2015

Team of the year: New Zealand

Player of the year: Dan Carter (NZ)

Coach of the year: Michael Cheika (Australia)

Try of the year: Julian Savea (NZ) v France, RWC quarter-final

Breakthrough player of the year: Nehe Milner-Skudder (NZ)

Women's player of the year: Kendra Cocksedge (NZ)

Men's sevens player of the year: Werner Kok (South Africa)

Women's sevens player of the year: Portia Woodman (NZ)

Referee of the year: Nigel Owens (Wales)

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