The WRU have given a cautious welcome to the Dragons plans

The agreement now states that a region should be owned by one member club.

"If the takeover is not in line with the current deal we need to sit down with all four regions and talk," said WRU group chief executive Roger Lewis.

"The participation agreement is a partnership that has to continue to evolve, we can't look back."

606: DEBATE Have your say on a possible Dragons takeover

A group of Gwent-based businessmen confirmed last week that they are in talks with the board of the Newport-based regional rugby side over a multi-million pound takeover deal.

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

We would encourage and be prepared to talk to anyone with ambitions to develop professional rugby in east Wales Roger Lewis

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.

Former WRU chief executive Steve Lewis has been linked with the equivalent position at the Dragons, should the deal go through.

Roger Lewis was encouraging but non-committal over the Union's response to the takeover.

"We haven't seen the detail of the takeover proposal so we can't comment on that," he told BBC Wales' Scrum V rugby show.