Bates rejoined the Falcons in the summer of 2007, initially as coaching and technical director, before assuming the interim director of rugby role in March 2008.

Appointed on a permanent basis in the summer of 2008, the former Wasps and England scrum half took the reins at a club whom he had helped to Premiership and Cup success as a head coach during his first stint at Kingston Park.

Leaving the club in 2003 to become director of rugby at Border Reivers, Bates also assumed coaching duties with Scotland 'A', whom he coached to victory over England Saxons in the 2006 Churchill Cup.

Having crossed back over the border to join the Falcons, Bates was handed the role of England Saxons coach for 2008, going unbeaten in his five matches in charge, which included a successful defence of the Churchill Cup title in North America.