Peter Thorburn coached Bristol to relegation last season

A review panel made the decision at a meeting on Wednesday.

It was made up of three representatives from Premiership clubs, three from Division One clubs and Rugby Football Union (RFU) chief executive Francis Baron.

The panel had to decide between a play-off system - supported by the Premiership clubs - and automatic promotion and relegation, which was backed by the Division One teams.

They were deadlocked at three votes each and Baron cast his deciding vote in favour of automatic relegation.

The Premiership clubs were represented by their Premier Rugby organisation.

Relegation undermines the stability required for the viability of the professional club game Premier rugby statement

The delegation comprised chief executive Howard Thomas, chairman Charles Jillings and Leicester boss Peter Wheeler.

"Premier Rugby are extremely disappointed with today's announced decision by the promotion and relegation review panel to impose automatic promotion and relegation from the Premiership," they said.

"Premier Rugby believe this decision is not in the interests of the professional game in England, and will actually have a considerable, damaging effect."

Premier Rugby claim the decision will have a negative effect on England's chances of winning the 2007 World Cup because it will encourage teams to buy overseas players rather than developing young English talent.

They also say it will stop sides developing their stadiums, have a negative impact on Sport England-funded academies and discourage clubs from investing in their community schemes.

Difficult decision

They added: "It undermines the stability required for the viability of the professional club game."

RFU chief Baron, who cast the deciding vote, admitted he had found himself in a difficult position.

"This was not an easy decision to make, as each side presented good arguments in support of their own position," he said.

"I believe that there are better solutions to this issue than the two choices available to the panel.

"I hope both parties will engage in debate over these options, and that these discussions will start soon."