"I will wait and see what my body is telling me at Christmas but, like anything you want to have everything in place before you announce it. It's in the back of mind: I'm nearly 34 so after Christmas I'll make a decision," Danaher told BBC Berkshire.
"I'm not dreading it. I think in my mid-20s or heading towards my 30s I was in denial, but I've come to terms with it now. I'm ready for the change in a year's time. Hopefully that will be coaching and coaching here.
"I'm loving the stuff I'm doing with the academy and it is a completely different challenge for me. I love working with the kids and it's great to do something different."
Danaher was part of the London Irish side that reached the semi-finals of the Heineken Cup in 2008, playing in all eight games as the Exiles saw off Perpignan in quarters before being edged out by European giants Toulouse 21-15 at Twickenham.
He played in the Amlin Challenge Cup Final two years earlier as London Irish lost to Gloucester in heart-breaking circumstances at The Stoop, with the Cherry and Whites winning an extra-time thriller 36-34. The London-born back rower was also a losing finalist in the English Premiership Final in 2009.
He represented Ireland at U19 level and England at U21 and was a senior England tourist in South Africa in 2002, although he failed to earn a Test cap. And now he is close to breaking his club's all-time record number of appearances. Danaher needs just 11 more to overtake Justin Bishop at the top of the list, some 13-and-a-half years after making his debut in a league clash with Gloucester.
"I'm not one for stats and records, but it's nice to know I'm on 270 and only a few behind Justin Bishop on 280. It would be nice to beat that or at least match it," added Danaher.
As many as seven of the 11 appearances he needs could yet come in the Amlin Challenge Cup this term, but that will depend on whether Irish can build on their stunning start to their latest continental campaign.
Brian Smith's men currently top Pool 5 with a perfect 10 points from two games after they hammered Italian outfit I Cavalieri Prato at the Madejski Stadium and Portuguese debutants Lusitanos in Lisbon.
They face far tougher challenges in rounds three and four, though, when they take on French giants Stade Fancais in the December double header. Stade head to Reading on Sunday, December 8, with the return fixture taking place in Paris the following Saturday.