London Welsh plans to base training in Wales as part of an agreement with the Ospreys have been cancelled.

The cross-border partnership is still to go ahead in a reduced form.

The scheme is designed for the Exiles to improve playing standards and give Ospreys youngsters experience in the English second-tier Championship.

But the prospect has sparked concern from both the the Rugby Football Union and the Welsh Rugby Union, as well as Welsh Premier Division clubs.

The Welsh clubs are worried about the semi-professional system losing its status as a feeder to regional rugby.

It will be an exciting tie-up with the Ospreys that will be beneficial to Welsh rugby London Welsh managing director John Taylor

The RFU want a minimum of 14 English-qualified players in Championship match-day squads of 22 next season.

It is also understood that the Union is generally concerned about the prospect of a team being based outside of England.

London Welsh are preparing for Friday's Championship semi-final at Bristol.

Despite the problems over the Ospreys link-up, Exiles managing director John Taylor remains positive about the prospects for the partnership and insists that a deal including provision for training camps and commercial help will go ahead.

"It will be an exciting tie-up with the Ospreys that will be beneficial to Welsh rugby," the former Wales and British and Irish Lions flanker told BBC Sport Wales.

The Ospreys also emphasised their commitment to the project.

"We are disappointed at the RFU's reaction to the proposed partnership between the Ospreys and London Welsh Rugby Football Club Ltd," said an official statement from the region.

[Ospreys] would hope that both the RFU and the WRU are able to share our foresight and identify the many benefits that such a working partnership has for all parties Ospreys statement

"But [we] would like to reiterate our continued commitment to working closely with London Welsh in a relationship that would be a positive step forward for both organisations as well as Welsh and English rugby in general.

"The proposed partnership would lead to improved facilities and an exchange of commercial and rugby expertise, bringing with it obvious benefits to the two organisations.

"Furthermore, the player and coaching development opportunities afforded by the partnership, with individuals being able to experience new environments and styles of rugby, would inevitably help to raise standards, not only here in Ospreylia, but also in the Championship in England.

"We will continue to discuss all possibilities with London Welsh, and would hope that both the RFU and the WRU are able to share our foresight and identify the many benefits that such a working partnership has for all parties."

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