The Welsh Rugby Union's takeover of the Newport Gwent Dragons has taken a step closer with the two parties reaching a 'heads of terms' agreement.
The planned takeover has a targeted completion date of July 1 and will see the WRU take control of the region both on and off the field. The deal includes the WRU purchasing the Dragons' Rodney Parade ground and taking control of the region's employees.
The WRU also states it plans to invest in the stadium and pitch with CEO Martyn Phillips saying the takeover is about safeguarding rugby's future in that region.
"All parties recognise that from an NGD perspective significant improvement is required on and off the pitch and that it is now time to take a different approach," Phillips said. " "Without this action the future of both the NGD and Newport RFC is at best uncertain, along with the existence of Rodney Parade.
"There is still a lot of hard work to be completed before the proposed transaction proceeds, but it is important to recognise that there will be no magic wand.
"We have put together the very best package we can for rugby in Gwent, but there is clearly still work to be done and there is an ongoing process of due diligence to be followed in order to achieve the best outcome for Welsh Rugby.
"Initially we will focus on consolidating a high performance environment for the players and on ensuring high quality coaching. We know that we can only deliver on our ambitions if the communities of the region are engaged and get behind the team, but we believe that the solid foundations and sustainable future we will provide will be central to that happening.
"We will also focus on ensuring that the required pitch and facility improvements are addressed. Above all we want to safeguard the future of regional rugby in the area and, in turn, support the 73 clubs in the region and their stakeholders.
"A WRU working party will be engaged as soon possible, to consider all of the issues raised and to provide a clear way forward in the long term."
"NGD supporters have been through a lot since the arrival of regional rugby, but today should be seen as a hugely positive step forward," added WRU chairman Gareth Davies. "We have committed to safeguard the future of the game in the region and we will be doing everything in our control to not only provide continued stability for players, supporters, employees and everyone with an interest in the game in the region, but we will also be looking for rugby to thrive at Rodney Parade.
"We want Gwent to have a regional team to be proud of, a team which becomes synonymous with success both on and off the pitch for the good of the whole game in Wales and we will be utilising all of the resources and the expertise we have available to make sure that happens.
"This is a hugely positive move not just for the region, the clubs and supporters in the catchment area, but also for the regional game in general and for the whole of Welsh Rugby. Today we have announced plans for a new beginning for rugby in Gwent and we do so with a huge amount of excitement, optimism and ambition."