Initial talks over a potential merger between Cardiff Rugby and the Ospreys have been held.
Bosses from the capital city club and Ospreys majority owners Y11 Sport have been involved in exploratory discussions amid Welsh rugby's ongoing financial difficulties.
Despite public declarations from the WRU and Professional Game Board of a commitment to a future with four regional teams, there are concerns among senior figures there is simply not enough money to fund that many teams.
The stunning merger proposal is far from a done deal amid a complicated backdrop, although there are people involved in the talks who believe any change should aim to be completed before the new season starts.
The team would play at Cardiff Arms Park, with the Ospreys not owners of their own stadium.
Despite the new six-year funding agreement being only recently signed on the basis of four regions being maintained, there are clauses and contingencies that factor in a reduction in the number of teams.
Y11 could potentially take over late former chairman Peter Thomas's stake in the club and become the second largest shareholder at after Cardiff Athletic Club. Cardiff's current Articles ensure no shareholder can own more than approximately 24%.
The talks come four years after the Ospreys and Scarlets came close to merging before the plug was pulled on the deal at the last minute amid anger from fans. No official approach about a merger deal has been made to the PRB this time.
Y11 Sport are understood to have held talks with Ealing Trailfinders and other clubs earlier this year, with the investment group open to increasing their stake in professional rugby. Those discussions came to nothing, with Y11 issuing a statement at the time.
The Asia-based sports marketing group, who hold a 75.1% shareholding in the Ospreys, already have a 25% stake in New Zealand Super Rugby side the Hurricanes.
Chief Operating Officer Nick Angio has previously said: "Y11 Sport & Media are in the business of investing in rugby and continues to develop a strategy of multi-club ownership and developing a commercial ecosystem that will benefit all clubs within the group of clubs. As a result, the company discusses with professional clubs across all major rugby competitions as well as governing bodies and other interested parties."
As things stands, the four Welsh regions' budgets are due to be slashed to £4.5m over the next couple of years, with player wages being driven down and squad sizes cut.
