A DAMNING report alleging conflicts of interest and undue interference by directors is to be tabled at Australian Wool Innovation's board meeting tomorrow.

The internal report was commissioned by AWI directors Brian van Rooyen and Roger Fletcher following the resignations of chief executive Brenda McGahan and company secretary Sue Myers in February.

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The report, which was overseen by former chairman of the Trade Practices Commission and corporate lawyer Prof Bob Baxt, will coincide with the board's attempts to finalise its next three-year strategic and operations plans.

The plans are required before Federal Agriculture Minister Tony Burke can agree to a renewal of AWI's statutory funding agreement, to apply from July.

The Weekly Times understands the van Rooyen-Fletcher report will detail the background to the resignation of Ms McGahan and raise concerns of how unnecessary interference by some fellow directors was making it difficult for AWI to recruit skilled staff.

The conflicts of interest centre around the involvement of Dr Meredith Sheil and Chick Olsson in AWI's support and promotion of the pain-relief treatment Tri-Solfen, which they both helped develop.

Both have consistently denied any conflicts, maintaining that they have always disclosed their interests.

The tabling of the report comes after nearly six months of turmoil and division among the board's eight directors.

The board has divided into two main factions.

On one side is chairman Wal Merriman, Brian van Rooyen and Roger Fletcher, while in the other is Chick Olsson, Dr Meredith Sheil and Laurence Modiano.

The two other directors, George Falkiner and David Webster, appear to be non-aligned although they sided with the latter group in the appointment - although not unanimous - of Stuart McCullough as the acting chief executive in March.

Mr McCullough was being tipped to be appointed this week to the permanent position.

However, Mr Merriman said the board was still interviewing candidates and a decision would be up to the board.

Mr Merriman declined to discuss the van Rooyen-Fletcher report or wouldn't confirm its tabling, although he said there would be "plenty of news to report at the end of the week".