The Australia captain Cameron Smith has given a ringing endorsement for Kevin Walters as a potential North Queensland coach after it was confirmed Neil Henry will leave the club at the end of the season.

“The board has decided that at this time the club needs to head in a different direction,” the Cowboys CEO Peter Jourdain said on the team’s website. “Neil will continue as head coach for the remainder of this season as everyone in the club focuses on finishing as high as we can on the competition ladder in 2013.

“It is important to highlight that this decision has been reached on a professional and amicable basis. Despite media speculation to the contrary, out of respect for Neil we have not sought out anyone to be his replacement beyond this season.”

It’s understood the former Henry fate was sealed following the Cowboys’ 18-16 loss to Brisbane on Friday night which ended their remote finals hopes.

Currently an assistant to Craig Bellamy at premiers Melbourne, Walters had already declared his interest in taking a head coaching role on returning to Queensland after this season.

Melbourne captain Smith said the 45-year-old would suit the struggling Cowboys, who have Test stars Johnathan Thurston, Matt Scott and James Tamou in their ranks.

“He’s a Queenslander so that’s a great fit there already,” the Test and Queensland skipper said on Monday, before Henry’s departure was confirmed.

“He’s got a relationship with a lot of players at the North Queensland Cowboys. He knows the majority of the players up there quite well so I think it would be a good fit. But I’m not going to comment on whether he should get the job or not.”

Henry has been under pressure for much of the season as the Cowboys’ board expected far better results with leading playmaker Thurston among their swag of big names.

North Queensland missed the finals in his first two years in Townsville in 2009 and 2010 but he steered the club into the playoffs in 2011 and 2012. Under Henry, the Cowboys have won 52 of 117 games.