The possibility of a merger between Welsh sides Ospreys and Scarlets will be discussed at a Professional Rugby Board meeting on Tuesday.
Dubbed 'Project Reset', the Wales Rugby Union (WRU) are keen to introduce a North Wales region, a move that could lead to the merger of two of the existing PRO 14 sides.
No decision has been made yet but if ratified at the board meeting, the new region could be operational next season.
Players from both regions were informed on Monday about the potential merger, Sky Sports News understands.
If the two sides were to merge, the move would be the biggest change in Welsh rugby since the introduction of regions in 2003.
Ospreys, who play at the Liberty Stadium in Swansea, currently lie fifth in the PRO 14's Conference A, while Llanelli-based Scarlets are fourth in Conference B.