DONALD KERR, the chairman of the English Professional Rugby Union Clubs, last night admitted the organisation was offered £200,000 by the English Rugby Football Union to disband.

The claim comes after the latest round of talks between the warring factions broke down in chaos, with the possibility of a third division team representing England for the Test against Italy next month at Twickenham.

The discussions that have spun out over several days since October 11th failed to reach any conclusions over the money, control and broadcasting-rights issues which have been at the heart of the year-long feud.

EPRUC, who employ the players, are threatening to sue the RFU and the International Board through UK and European courts.

Kerr, speaking on BBC Radio Five Live, accused the RFU, of "an act of bad faith".

He added: "We very nearly reached an agreement. We had drafted that agreement and then last night they faxed through to us a completely different agreement where they retracted everything they had agreed at the first series of meetings, even to the extent where they offered us £200,000 to wind up EPRUC.

"I think the line we have taken is that as clubs we have certain legal right, we have certain broadcasting rights and we have rights to trade as businesses.

"They brought leading counsel down to give them advice and his advice was that, what the clubs were saying, was right. Unfortunately though they have not put that advice into practice, so they are denying us our legal right.

"We are holding a press conference tomorrow and we will show both agreements and how the RFU has reneged on the first agreement. The stumbling blocks are that the RFU are not prepared to give us any control over competitions or broadcasting contracts. Effectively we have now been offered less control than we had under the old National Clubs Association." There was no immediate threat that today's England squad session would be boycotted.