The WRU had continually insisted maintaining four professional sides on an equal footing was at the heart of its long-term strategy that was launched in 2024.
The governing body say that was their preference from the outset, but the system will not return to the model “given seismic changes in the rugby landscape”.
The WRU now says it has taken “the difficult but necessary decision” to issue the formal two-year notice to terminate the current PRA agreement, in particular, to proceed with its debt refinancing with its bank, NatWest.
They say it was not a decision that was taken lightly, however “given the WRU’s duties to the game in Wales as a whole, the broader performance, financial and strategic needs of the game must take precedence”.
“When I announced the headline strategy back in July 2024, I said one thing is for certain, given the challenges facing rugby in Wales and globally, there will be times when we need to adjust our course,” said Tierney.
“We must seize this opportunity. Our continued aim is to build a resilient and world-class structure that will support Welsh rugby’s next generation and beyond.”
The Professional Rugby Board (PRB) is the organisation set up to represent the four professional sides and the WRU.
“The next phase of consultation, as always, will be conducted with the best interests of the whole of Welsh rugby at its heart,” said PRB chair Malcolm Wall, who is also a WRU board member.