The Welsh rugby regions have confirmed plans to join the English Premiership if a new European Cup is not launched.
The news comes as the regions and Welsh Rugby Union (WRU) appeared in public together for the first time since a row over money, control of the game and tournaments erupted last year.
They took part in a BBC Wales Scrum V special broadcast on Sunday.
The WRU also said starting new teams, if the regions walk away, had not been discussed.
The regions say they want to take part in a new European tournament to replace the Heineken Cup and Amlin Challenge Cup, which, it is claimed, could generate £1m extra for each team every season.
But the WRU insists on support for the present tournaments and associated television contracts.
Both sides have been talking behind the scenes since early January but met in public for the first time on Sunday in front of a studio audience.
Speaking in a round-table debate, Gareth Davies, chief executive of Newport Gwent Dragons, said: "The understanding we have with the English clubs is quite solid, whilst not underestimating the enormous hurdles that are in the way of that happening."
With the regions failing to sign a participation agreement with the WRU by New Year's Eve, there had been speculation that the union would create new teams to take part in the Heineken and Amlin cups.
But this was denied by WRU chief Roger Lewis on the programme.
"As the chief executive of the Welsh Rugby Union, I've not had any private conversations about setting up any new regions," he said.
He added that he was "committed to making the four regions work".
'Pain and cost'
Meanwhile Martyn Thomas, former chairman of England's Rugby Football Union (RFU), warned that most of the top English teams were struggling financially and keen to boost income.
"There is no crock of gold at the end of the rugby rainbow - there is merely pain and in fact cost," he told the programme.
"The majority of English clubs are losing money significantly and that's a problem in fairness that's replicated in Wales.
"In England it is far easier to get sponsorship - there is more money available.
"I think for the WRU and for the regions the issue for them is where they can bring extra money to the game."
As both sides fight for a position and solution, six of Wales' top players are considering central contracts from the WRU.
Wales captain Sam Warburton, who is understood to be close to signing, is among them.
The six unions representing England, Scotland, Wales, Ireland, France and Italy will meet again on Tuesday to try and sort out what next season's European Cup will look like.