A $4 million funding boost for rugby in western Sydney is a step closer to reality after Rugby Australia gave a conditional green light to Andrew ''Twiggy'' Forrest's bid to put a World Series Rugby team in the city's west.

High-level talks: Rugby Australia chief executive Raelene Castle. Credit:AAP

A high-level meeting between Rugby Australia chief Raelene Castle and her counterparts at NSW Rugby and the Sydney Rugby Union on Monday agreed to move to the next step of discussions with Forrest and his World Series team, who are proposing to fund a team in the region as part of their eight-team vision for the international rebel league.

It is understood correspondence has been sent from RA offices making the development official, but that one of many conditions of further engagement is that Shute Shield players be off limits.

With the NSWRU in the middle of finalising an action plan for the talent-packed but under-represented region, RA is mindful of protecting the state's player pathways.