There will be just two NRC teams from NSW in the 2018 competition, the state union announced on Wednesday.

NSW Rugby announced the contraction on Wednesday, with just the NSW Country Eagles and Sydney Rays to be in the 2018 NRC, with no Greater Sydney Rams.

It's the second time NSW has reduced its number of teams, and brings it in line with the Queensland structure of a city and a country side in the state.

Waratahs general manager Tim Rapp said the move was to make NSW's pathways more defined.

“The decision to move to two teams means that our pathways are more defined and aligned with our overall High Performance goals of creating opportunities for our players and support staff to be involved at a higher level. At the same time, we are bringing back the rivalry that underlines Sydney and NSW Country contests like never before,” he said.

“There are players who are proud of their heritage, be it Sydney or NSW Country and that’s what this competition is all about. Seeing NSW Waratahs players representing their team will add extra spice to the derbies in particular.”

It is unclear whether there will be another team added to the NRC to replace the Rams.

The 2018 NRC kicks off later this year.