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Wales' four regions are set for a major financial boost as part of the European rugby peace deal.

They are on course to see their share of Euro cash rising from just over £4m to just under £7m through the settlement which is due to be announced next week.

That will mean revenue for the Ospreys, Scarlets, Blues and Dragons rising from about £1.1m to £1.7m apiece.

This will come as a huge boost for the regions who have been seeking additional funding to help them become more competitive and hold on to their Wales stars.

The cash increase has been secured via the six-year accord which will see the creation of a new 20-team competition to replace the existing Heineken Cup.

Under the new deal, Euro revenue is to be split equally between the three competing leagues - the Aviva Premiership, French Top 14 and Pro12 - with each league guaranteed a minimum of £20m.

The Pro12 £20m will be divided pretty much equally between the four countries involved in the league - Wales, Ireland, Scotland and Italy - at around £5m each.

But after the first £60m of Euro cash is divided three ways, the next £4m will go to the Pro12 and the majority of it will head into Welsh and Irish coffers to reflect the fact they both contribute four teams to Europe whereas Scotland and Italy provide just two.

That would see Wales and Ireland both receiving about £6.8m, with Scotland and Italy ending up with £5.1m each.

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There is confidence that the overall Euro pot will exceed £64m, with Sky and BT having now reached agreement over joint television coverage.

So the Welsh regions appear on course to receive a sizeable windfall.

Moving forward, if Euro revenue rises above £80m, they will get a bigger share of the cash again and the aim is for the three leagues to be sharing £100m within five years.

The regions are also in line for additional cash as part of their new agreement with the Welsh Rugby Union, which is still under discussion.

Under the original Participation Agreement - which the regions refused to sign - they were due to receive £6.6m from WRU central funds.

That money was to cover issues such as international player release, observing overseas player quotas, plus a range of other issues.

The Union was also due to provide an additional £600,000 towards the cost of running the regional academies.

As part of the new Rugby Services Agreement being proposed by the WRU, the amount of money on the table for the professional game in Wales is now up to £9.3m.

That includes £2m a year which has been secured via sponsors to pay for the central contracting of star players, as well as the £600,000 of academy funding.

If a system for implementing some form of national contracts for elite players can be agreed upon, then the regions would no longer have to pay their wages, but would still be able to utilise them.

That, in turn, would free up additional cash to spend on bolstering the rest of their squads.

It’s understood the regions’ ultimate target is to share £24m a year, compared with the current £16m, and they look to be moving closer towards that goal.

Adding the enhanced Euro cash to the money they receive - largely through broadcasting contracts - for taking part in the Pro12, the regions will see their competition revenue rise from around £9.6m to about £12.5m.

And £9.3m from the WRU sees the professional game pot rising to close on £22m.