ENGLAND'S leading clubs have been offered an £8 million deal by the Rugby Football Union who have gambled heavily by going over the heads of the club's negotiators in an attempt to settle their long running dispute.

A letter has been sent to each of the 24 clubs in Courage Leagues One and Two setting out details of the proposed contract which involves the creation of a news joint company to administer the professional came.

Meanwhile EPRUC (English Professional Rugby Union Clubs) have called for the appointment of an independent arbitrator an idea the RFU will discuss, tomorrow - to help find a solution to the dispute following the latest breakdown in talks. Both sides believe they came close to reaching agreement last week but negotiations have stalled once again over the amount of autonomous power Twickenham is prepared to hand over to the clubs.

The RFU's £8 million offer - which would be followed by another £10 million next season is calculated to drive a wedge between the majority of cash strapped clubs and EPRUC senior officers who are holding out for greater administrative power. The eight month dispute is complicated by a thinly veiled threat from EPRUC that they may withhold England players from the international against, Italy at Twickenham on November 23rd.

The proposal to set up a new, company jointly owned (50 per cent each) by the RFU and the top clubs has obvious appeal because it, would involve six of the eight directors and the company chairman who would have a casting vote). All television and sponsorship money earned by competitions involving EPRUC clubs would go to the individual clubs subject to a deduction for administrative expenses.

However, Cliff Brittle, the RFU executive committee chairman, admitted the RFU would have to maintain "necessary controls" over club competitions and TV agreements, notwithstanding the club's acceptance of the RFU as the supreme governing body. In their letter to the clubs the RFU claim the proposed contract has "sufficient provisions to ensure that the RFU's overall guardianship of the game and its international commitments are not endangered while at the same time giving the clubs sufficient freedom to develop the domestic game commercially."

Brittle also rejected the suggestion, made frequently by EPRUC officers, that the RFU do not possess commercial expertise to administer the professional game in the best interests of the clubs. "We welcome the business expertise demonstrated by many clubs but they don't have a monopoly on business acumen or ability to run the professionals game," he said.

EPRUC has threatened Twickenham with legal action over alleged restraint of trade and infringements of the Treaty of Rome but Tony Hallett, the RFU secretary, said the contract offered to the clubs was based on sound legal advice from two different sets of counsel and would stand up strongly should it be tested against current sports law. Hallett also defended the management skills of the RFU, pointing out that the structure was currently "in the throes of a wholesale review."

If, in a worst case scenario, England internationals were withdrawn by EPRUC from the Italy, match, alternative players would be selected from the lower, leagues, warned John Richardson, the RFU president. He added: "There are lots of good players in the country and we are not in the business of calling off international games. EPRUC seem to want the RFU to completely hand over the senior club game and give them any money they feel like asking for. This is not possible."

Jack Rowell, the England manager, gave a strong hint that he would name the new England captain next month irrespective of whether the EPRUC dispute had been resolved.

Rowell, who oversaw the England training squad at Henley yesterday, does not wish to subject the new skipper to undue political pressure from warring factions but he conceded the imminence of the Italy match could reluctantly force his hand. The England squad of 21 will be announced on November 4th.

Will Carling declared there were no circumstances in which he would decline to turn out for, England, whatever policy EPRUC adopted towards the release of players for international duty. "The players should, not be used as pawns" he said "Players should always be allowed to play for their country., I am sure England will pick their strongest side and the players will be available for the Italy game."