Wales head coach Warren Gatland says discussions over returning flanker Dan Lydiate have reached stalemate.
Lydiate, 26, has reached an agreement with Paris-based Racing Metro to move back to Wales in December. But which region he will join is still unclear.
Gatland held talks with the regions this week to discuss the future of the former Newport Gwent Dragons player, who faces Fiji on Saturday.
"We can't find some common ground to move forward," he told BBC Wales Sport.
Gatland is keen for members of his squad to be based in Wales and will decide which players will be offered dual contracts - meaning their wages will paid jointly by the WRU and the player's region.
The scheme was part of a £60m deal, which also states that any player returning to Wales has to be offered first to their region of origin.
However, if they cannot reach an agreement with the player, he will then become available to the other three regions.
Lydiate's region of origin would be Dragons, who he played for between 2006 and 2013.
"It's a bit of a stalemate, really," Gatland said. "I think both sides are aware of the issues and frustrations in terms of that but at the moment we haven't come to a conclusion.
"It's unfortunate because there's a new deal being put in place and I felt both sides made concessions.
"Hopefully some common sense will prevail and we'll get it sorted out in the next couple of weeks."
Dragons coach Kingsley Jones has said there were "chats ongoing" and added: "He's a British Lion and a many-capped international, so I'd expect any club [to be interested] and I'm sure the English clubs are monitoring the situation. He's a top-class player."
However, the Salford-born player is tipped to join Ospreys, with coach Steve Tandy having said that the player would be a good acquisition.
"He [Lydiate] is... of interest, but that's as far as I can really take it," Tandy said.
"He's a fantastic player. He's a British Lion and we'd always welcome British Lions into our environment, but it's something that I can't really comment on."
Tandy added he believed senior management at the Swansea-based region had probably discussed the position of the blind-side.
|Former Wales flanker Colin Charvis|
|"The team that would appreciate him the most at the moment are the Dragons. They are the team than need a player of Lydiate's calibre."|
Former Swansea, Dragons and Wales back-row Colin Charvis thinks Lydiate should return to Rodney Parade.
"The team that would appreciate him the most at the moment are the Dragons; they are the team than need a player of Lydiate's calibre," he said.
"It's where he started, he has a home near the ground but it's really up to him.
"The Ospreys have been touted as the favourites to sign him, but we have to question - and I don't wish to be offensive to Dan - whether he'd get in the team.
"You've got a very good, balanced back row at the Ospreys and some strength in depth.
"He'd be really valued at the Dragons, but ultimately it's got to be his decision."
Lydiate, who will earn his 39th cap for Wales against Fiji on Saturday in the second autumn Test at the Millennium Stadium, moved to France in June 2013, but has struggled to hold down a first-team place.