The Welsh Rugby Union (WRU) has outlined how it plans to cut from four professional teams to three by 2028 – with Ospreys and Scarlets set to fight to be the side in south west Wales.

The governing body confirmed in April it intended to press on with plans to go down to three men’s teams from the 2028-29 season, with one in the capital, one in the east and one in the west.

WRU-owned Cardiff and Dragons – an independently-backed business – are set to be given those licences.

That would leave Swansea-based Ospreys and Llanelli-based Scarlets to compete for the remaining spot, with a joint future merger venture also a practical, if controversial, possibility.

The WRU state that the process to decide the framework for the final decision will begin in December and finish before the end of the 2026-27 season.

“The WRU board has examined in detail a range of factors when determining the three future licence areas and has confirmed that only incumbent teams will be considered eligible for a licence,” read a statement.

“This means contingent on the agreement of the final licensing terms, Dragons RFC and Cardiff Rugby would be offered the respective east and capital licences.”

The WRU state that they will “bring together the leadership of all the professional teams, and other stakeholders” after Wales’ Nations Championship matches in November.

They intend to thrash out the finances of their proposals and assess the interests of the quartet in taking up the new licences.

“This will allow an orderly implementation and avoid prolonged uncertainty for clubs, players, supporters, investors and sponsors,” said Marianne Okland, chair of Welsh rugby’s Professional Rugby Board, whose members met on Monday.

“Assuming that Cardiff Rugby and Dragons RFC want to sign up to the proposed licensing terms, there is now certainty that they will be offered the capital and east licences respectively.

“We understand that there will be ongoing uncertainty until a final decision on the west licence is made.

“That is why we are committed to progressing in a collaborative way, whilst not underestimating the considerable challenges ahead, and providing stability for all at the earliest opportunity.”

In April, the governing body confirmed that the cut to three teams would not happen until 2028 after a deal with Ospreys owners Y11 Sport & Media to buy WRU-owned Cardiff fell through.

Scarlets and Ospreys joined their eastern rivals in signing a Professional Rugby Agreement (PRA) this summer and are now poised to battle for survival.

That is unless they can be convinced or agree to merge – which was close to happening in 2019.

“We have already begun to put the support structures in place to develop the related player pathways, to create the best environments for our senior players, to provide the right financial support and to develop the facilities around them,” said WRU vice chair John Manders.

“We are making important progress which will safeguard the future of our game, concentrate resources and give our teams the best chance of achieving success at all levels.”