The Dragons could quit Rodney Parade for a modern stadium

A group of Gwent-based businessmen has confirmed it is in talks with the board of the Welsh regional rugby side.

The proposal includes a plan to build a new stadium in or around the Newport area and the plans envisage completion of the stadium by September 2009.

The hope is that rugby, football and entertainment events will be held at the venue and also funds made available to boost the Dragons squad.

Spokesperson outlines plans for the Dragons takeover

There is the possibility that the city's football team, Newport County, will be asked to ground-share with the rugby team.

One possible site for a stadium development could be near County's current Spytty Park home.

A spokesperson for the consortium, Andrew Lambert, said: "The key aim is to develop rugby in the area.

The WRU is delighted the potential that exhibits (at the Dragons) is being recognised WRU group chief executive Roger Lewis

"The people involved, certainly from a rugby spectator's point of view, have got the right motives.

"We're well on with our discussions but it is a complicated issue and a matter that we must get right.

"The goal is to improve the situation, both on the pitch and in terms of the facilities."

The Welsh Rugby Union is cautiously optimistic over the latest developments.

WRU group chief executive Roger Lewis said: "Our focus is to fully support the future of a vibrant and dynamic Newport Gwent Dragons and to ensure the sustainability and development of rugby at all levels in the east of Wales.

"We have spoken to a number of the key stakeholders. We now look forward to understanding the full detail of these proposals and welcome the opportunity to contribute to the way forward.

"It has been a tough year for the Dragons but talent and determination on and off the field have turned it into a successful season.

"The WRU is delighted the potential that exhibits is being recognised by people who want to explore proposals to invest in the future of rugby in the region."

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Dragons coach Paul Turner has had to build his player base on a budget that is shoestring in comparison with that of the other three Welsh regions: Cardiff Blues, Llanelli Scarlets and the Ospreys.

Even under that restraint the Dragons reached the semi-final of this season's European Challenge Cup, European club rugby's second-tier competition.

Although the Rodney Parade-based side sit third from bottom in the Magners League, just one point from Friday night's home match against Connacht will ensure a play-off spot to return to the top-tier Heineken Cup next season.

If the new consortium agrees terms to take over the Dragons franchise, then Turner will be given the financial backing to create a squad capable of challenging for the Heineken Cup.

The exact future of the tournament is in doubt at the moment in the face of boycott threats from the French and English clubs.

But European Rugby Cup, the governing body, has promised that the competition will continue.

Representatives for the consortium have already met with Dragons chairman Martyn Hazell along with fellow board members Tony Brown and Gethin Jenkins and talks are ongoing.