Llanelli could be forced to compromise on their fight to remain as a stand alone club next season.

It is understood that a lack of money could force them to concede ground under a four or five-team proposal.

The Scarlets want to stand alone and also get the same money as merged sides, but that is considered unrealistic.

Financial realities could force the Scarlets to accept a merger with Swansea for next season, regardless of Llanelli's preference to remain as they are.

The latest deadline for the clubs to produce a coherent proposal is Thursday night.

Welsh Rugby Union chief executive David Moffett is believed to have put forward �8 million to fund five new provincial sides or superclubs.

That would see three merged teams receiving around �1.8m each, with two standalones getting �1.3m - scarcely more than Llanelli get now.

Neath are still intent on merging with Bridgend, Newport and Ebbw Vale are happy together, while Cardiff are favourites to stand by themselves.

Pontypridd, meanwhile, are torn being going it alone - happy to exist on less funding - or combining with Caerphilly to create a Valleys franchise.

The clubs meet again on Thursday morning to try to agree a proposal that Moffett can put before the WRU board that night alongside his own provincial plans.

The board will then have to decide which option to take to the Union's EGM on 23 February.