Welsh Rugby Union performance director Nigel Walker has said "nobody" wants to cut four regions into three, not even the WRU.
The Union spent £25,000 commissioning a report by Oakwell Sports Advisory, known as the Umbers report, with one recommendation suggesting losing a team is the way to make professional rugby in Wales financially viable and successful.
A series of meetings have been ongoing behind the scenes for a number of weeks, with Welsh rugby in a state of crisis. The current four pro sides, Cardiff, Ospreys, Scarlets and Dragons have all endured largely miserable seasons, with the men's national side's disastrous Six Nations, which saw a first ever home defeat against Italy, appearing to be a tipping point for the WRU to act.