The NRL is facing a fresh rebellion over its plans to overhaul development pathways, with clubs united in their belief there needs to be a suitable replacement if the National Youth Competition is disbanded.

Representatives from NSW Cup and NRL clubs converged on Canterbury Leagues Club for a summit on Thursday to discuss concerns over how Shane Richardson's "whole of game" manifesto will affect the pathway to first grade. "There was talk that there needs to be an under-20 or under-21 competition between the 18s and the State Cup and that it needed to be funded by the NRL," said NSWRL boss David Trodden. "That could be an under-20 or an under-21s, people have differing views about that – but everyone is firmly of the view there needs to be a state-based [bridging] competition. Everybody is also of the view the proposed make-up of teams in the State Cup – with a couple of New Zealand teams, a Fiji team and only five Sydney-based teams – is not something the NSW-based clubs will support. That's not something that would necessarily work in NSW."

On the chopping block: The Newtown Jets celebrate winning the 2012 NSW Cup grand final. Credit:Brendan Esposito

There are fears that foundation clubs North Sydney and Newtown could be on the chopping block should there be a rationalisation of State Cup teams in Sydney. "The concern is if there are only five Sydney clubs, someone has to go," Trodden said. "That would mean more NRL clubs than Sydney-based State Cup clubs as a participation pathway, that doesn't work. If anything, you need more clubs at a State Cup level feeding into NRL level in an ideal participation pathway."

The clubs are keen to address the issue immediately amid speculation the NYC could be scrapped at the end of next year, not at the end of 2017 as first thought. The clubs resolved to appoint a five-person steering committee to represent their interests, with all stakeholders to reconvene in a fortnight to discuss a revised blueprint that could be presented to head office.

One of the issues that will be addressed is eligibility to ensure there is a relationship between NRL clubs and their feeder terms. The most controversial part of Richardson's proposal is sending demoted or prospective NRL players to teams based purely on birthplace. That would result in NRL coaches having no say over the coaching structures or playing styles and also pit teammates against each other in second-tier games. "There was general discussion about that and it was thought it was unworkable.," Trodden said. "The NRL clubs are strongly of the view that NRL clubs and coaches need to be firmly in control of the pathways."

The governing body is already at loggerheads with the clubs over issues including funding, the handling of broadcast rights negotiations and stadia strategy.