Fresh from the demolition of England, which confirmed him as the best fly half in the world, Dan Carter said yesterday that he will be playing in Europe next season, but for Perpignan, who have not won a French title since 1955, rather than Toulon, the Harlem Globetrotters of Gallic rugby. Carter, 26, had been given a six-month “sabbatical” from his New Zealand contract and was expected to join Toulon, the nouveau riche and newly promoted club where Tana Umaga is coach of a star-studded international squad.

It was the chance of playing in the Heineken Cup that changed his mind. “If I am going to play in Europe I want to test myself against the best Europe can offer and I am excited about the challenges both the Top 14 and the European Cup will bring,” Carter said. “I have done plenty of research on both Toulon and Perpignan and while I have no doubt that I would have enjoyed Toulon, in the end Perpignan's qualification for next year's European Cup swayed my decision.”

Carter will join Perpignan after the All Blacks' tour to Hong Kong and the British Isles in November before returning to New Zealand, where he says he wants to remain playing for the Crusaders and the All Blacks until the 2011 World Cup in New Zealand.

For Perpignan it continues the plan of signing influential stars on short-term contracts to augment their powerful squad. Percy Montgomery, the South Africa full back, stayed in France after winning the World Cup last autumn and has signed for Western Province for next season after just finishing with Perpignan, who in this longest of seasons lost in the Top 14 championship semi-finals to Clermont-Auvergne last Saturday.

“I think it [the signing of Carter] is a big moment for our club,” Paul Goze, the president of Perpignan, said. “He is the No1 player in the world in his position and I think that clearly confirms our ambition to finally bring the shield to the foot of the Castillet [a Perpignan landmark].”

Money does not seem to have been the only key to Carter. Toulon, bankrolled by Mourad Boudjellal, the billionaire who owns one of France's largest comic book publishing houses, are believed to have offered Carter NZ$1.3million (about £500,000) for the six months, more than Perpignan. French clubs do not have a salary cap to worry about. Toulon have Andrew Mehrtens, the former All Black fly half, already in their squad.

Perhaps some of the stories coming out of Toulon also dissuaded Carter. Their squad is in flux and the team achieved promotion to the top flight only on the penultimate day of the season after a sometimes unhappy campaign during which the violence of French club rugby was given as one of the reasons for Victor Matfield, the South Africa lock, returning to the Bulls in Pretoria.

Heyneke Meyer, the former Bulls coach, has been courted by Toulon, but he is set to be the Leicester head coach after the sacking of Marcelo Loffreda. Many believe that Meyer should have replaced Jake White, who is believed to have turned down the Leicester job, as Springboks coach. After South Africa selected Peter de Villiers, their first black coach, in January, Meyer, 41, quit after seven years with the Bulls and is reported as saying: “If I can't coach the Boks I don't want to coach at all.”

The arrival of Meyer has prompted the departure of Neil Back after 18 years at the club. Despite a shortlist including many of the leading coaches in the world, Back was disappointed not to have convinced Leicester that he was ready to take over from Loffreda and has taken the job of director of rugby at Leeds Carnegie, who were relegated from the Guinness Premiership last season. Tom Biggs, the Leeds wing, will join Leicester. Richard Cockerill, the Leicester forwards coach, will stay, but Meyer will announce new defence and backs coaches.

Gloucester have suffered a double blow with Gareth Delve and Akapusi Qera, the back-row forwards, suffering knee injuries that are likely to keep them out of action for several months.