A proposed takeover of Cardiff by Ospreys owners Y11 Sport and Media has fallen through, the Welsh Rugby Union has confirmed.
The future of Swansea-based Ospreys had been plunged into uncertainty after Y11 emerged as the preferred bidders to purchase Cardiff from the WRU.
Amid WRU plans to cut one of its four men's regional sides, four-time league champions Ospreys have only been given guarantees as a professional team until June 2027.
However, an announcement on Wednesday confirmed the WRU and Y11 have "jointly agreed" that the Ospreys' owners would "withdraw from the bid process" due "to constructive discussions" and that Cardiff will remain under WRU ownership "for now and until it makes commercial and strategic sense to revisit this decision".
WRU chief executive Abi Tierney said: "We know we need to move to three clubs, nothing has changed there, for both financial and performance reasons and so we can invest in the right way in our pathway to ensure the future of the game, but this move brings stability to the system where it is needed and a calmness and assuredness to our plans for the future."
The WRU has insisted that it still plans to go from four to three sides in the United Rugby Championship (URC), with further details on a new strategy due to be released in June.
PA
