The 12 clubs voted this week to support a French boycott of the competition but RFU chairman Martyn Thomas said: "If the clubs pull out of Europe, so be it.

"In my view, going to court would cause more aggravation, deplorable though the decision of the clubs is."

However the clubs would face action if they arranged unsanctioned fixtures.

Interview: RFU chairman Martyn Thomas

Interview: Premier Rugby's Mark McCafferty

Interview: England's director of elite rugby Rob Andrew

Heineken Cup chief Jean-Pierre Lux said he was not being "fatalist" as he painted a bleak picture of the prospects for the tournament.

"It is a real shame from a sporting point of view that we cannot come to an agreement," said Lux.

We'll spend a year without European competition Ligue Nationale de Rugby chairman Serge Blanco

"They (television companies and sponsors) are all calling. They are very worried, and that is normal.

"One week there is hope, the next despair. How can we look for new partners in these conditions?"

The RFU and Premiership clubs are in dispute over shares and voting rights in European Cup Limited, the organisers of the Heineken Cup.

France's Top 14 clubs first threatened to pull out of the event back in January because of the RFU row.

The French clubs are also concerned by fixture congestion, caused by the Rugby World Cup which is hosted by France this autumn.

The Ligue Nationale de Rugby, which represents the top 14 French sides, is likely to decide by Thursday whether or not to pull out of European competition next season.

It's difficult to see a way out, to be honest. The ball is very much in the hands of the French Rob Andrew, RFU director of elite rugby

"We'll spend a year without European competition, then we'll try to think up something else," LNR chairman Serge Blanco told the L'Equipe newspaper.

"I find it regrettable that a competition as great as this is being sacrificed and that the RFU is not making an effort to match our reasonable demands.

"The French Federation agreed to hand us an equal share but it doesn't mean anything if the clubs from other countries are not treated with the same consideration."

Thomas insists Premiership clubs are contracted to participate in the Heineken Cup but, after consulting with lawyers, says he would be against going to court over a boycott.

"It would be costly and ultimately, even though we have a very winnable case, we could not force them to play rugby if the ruling went our way," he said.

"They could disrupt the tournament in other ways.

"If the Premiership clubs want to shoot themselves in the foot by denying themselves �5m in central payments and a significant sum in gate money, that is up to them."

However, the RFU could revert to legal action should the Premiership try and organise fixtures with their French counterparts in order to recoup some of the lost revenue.