The North Sydney Bears and a Western Australian consortium are exploring the prospect of joining forces to create a "Western Bears" franchise seeking inclusion in an expanded NRL competition.

Just a day after new ARLC chairman Peter Beattie declared rugby league must "expand or die", Fairfax Media can reveal former Western Reds chairman Laurie Puddy and North Sydney Bears chairman Perry Lopez have held a series of secret talks about a potential combined bid. While the negotiations are still in their infancy, both parties remain open to the prospect of working together to provide a compelling case for an NRL license.

The North Sydney Bears took on the Parramatta Eels in a NRL trial this month. Credit:AAP

The Bears recently pitched a dual-city model proposal when the Gold Coast Titans were put on the market, although the NRL opted to hand the license to the Rebecca Frizelle-Darryl Kelly consortium. Despite the setback, the Bears remain open to the idea of teaming up with an interstate contender as part of their bid for readmission.

"I have been talking to them," Puddy said of the discussions with North Sydney.