The Welsh Rugby Union has issued a stark ultimatum to the Dragons, Ospreys , and Scarlets : sign the new Professional Rugby Agreement by Thursday or face the prospect of a two-year notice period being served on all teams that could threaten their very existence. The move represents a potentially seismic development that could plunge Welsh rugby into a period of huge uncertainty. It follows a meeting between the WRU and three independent club teams on Tuesday. Join WalesOnline Rugby's WhatsApp Channel here to get the breaking news sent straight to your phone for free The WRU's preference is to stick with four teams and get the new deal over the line but there's a realisation the stalemate that has now gone on for months cannot continue. Previously it was suggested Cardiff could be moved onto the new PRA with increased funding and a refinancing of the debt with the other three staying on the current deal which the WRU does not believe is fit for purpose. But the nuclear option, which is now being considered, is calling in the two-year notice period on the current PRA which could hypothetically result in a redrawing of the professional rugby landscape in Wales. The WRU hold the licenses for the Welsh clubs who compete in the United Rugby Championship and European competitions and has the power to revoke them in two years once a notice period is served, but there would be short-term financial consequences if it withdrew a club from these competitions. In February it was announced Wales' four professional teams had agreed in principle to a five-year deal which includes increased funding and a refinancing of each organisation's debt - with the WRU taking the Covid loans onto its own balance sheet. But things changed significantly when Cardiff entered administration and the WRU assumed ownership of the club. The WRU spent £780,000 on the purchase of Cardiff and have also committed to putting in around £1.2m into Cardiff until June 2026. As a result, the signing of the new PRA has hit the rocks with the WRU now issuing a hard deadline of midnight on Thursday. This demand is significantly more serious than the previous deadline issued by WRU chair Richard Collier-Keywood last month, which failed to move the dial. WalesOnline understands that if the three independent clubs do not sign the new agreement, the WRU are seriously considering heading down a path that could change things forever. Indeed, a potential consequence could be going down to three clubs, even though WRU CEO Abi Tierney has been strong on her desire to keep four professional teams. It is understood that since Cardiff fell into WRU ownership there have been amendments to the proposed new PRA, with the funding directors being asked to fund a higher deficit than had been initially agreed. There is also concern among the three clubs that were the new PRA to be signed there would potentially be no curb on how much the WRU could spend on Cardiff, over and above what they give the other three. There have been requests to change the voting rights on the Professional Rugby Board given Cardiff are now owned by the WRU. WalesOnline has also been told the other three have questioned whether there should be a ban on Cardiff signing players from the other three professional clubs while under WRU control. This is a problem the WRU do not need, with a new PRA supposed to be the final component in the governing body's five-year One Wales strategy. Last month chairman Collier-Keywood said of the deal stalling: "I am confident that we will get there. They are asking totally fair questions. "We now sit as the owner of Cardiff and they want to know from that perspective what we are going to contribute. And we are saying we are going to deliver what we should do in Cardiff, as opposed to the previous owners (Helford). “We are in the middle of talks with people about refinancing our debt and these numbers have been given, so if ‘one of you is going to blow up’ this deal because of Cardiff, and we get why you want to understand what we have done, then I really do need to know that sooner rather than later because I we don’t want to waste anyone’s time around the refinancing. "The whole basis of the new PRA is fixing things for the clubs as much as possible and we are effectively taking the equity risk on Welsh rugby. That makes sense to us and the clubs as we are the bigger entity and the ones generating the revenues for the most part in Welsh rugby. And we are looking to pass the benefits of any refinancing onto the clubs."