Llanelli RFC is to withdraw from the Welsh Premiership for the 2023/24 season.

It will also face a greater demand to provide players to the Scarlets, who face drastic budget cuts as well as potential World Cup call-ups.

Scarlets heritage director, Rupert Moon said the decision was “for the good” of Llanelli and the region.

The Welsh Rugby Union said it has “sympathy” for Llanelli and has offered support.

It has also called a meeting of the community game board for Wednesday to discuss the club’s decision.

Insiders at the club, one of the 11 founding clubs of the WRU in 1881, feel they are facing a perfect storm next year.

The combination of additional games, the impact of the World Cup on the United Rugby Championship calendar, national squad requirements and regions slashing the sizes of their squads due to budget cuts will all take their toll.

However, they insist it is not the end of one the most famous names in world club rugby.

The club said it will play “competitive friendlies” against opposition – as it did against Saracens this month – to continue developing players for Scarlets.

Moon added: “Llanelli RFC can be stronger and more focused as a result of this decision with a streamlined and structured season focusing solely on player development, training and support.

“The new-look Premiership next season is not a model for player development.

“The semi-pro and pro rugby seasons don’t align. The pressures of a 30-fixture season without senior development players, plus increased financial pressures and player availability issues in a World Cup year means competing next season in the Premiership competition is just not possible.

“Llanelli RFC simply would not be able to fulfil all its fixtures next season, which would disrupt the competition and stretch resources too far, detracting from its key purpose to bring young players through.”

While the loss of a Premiership club is disappointing enough, it is a major symbolic blow for the state of the game in Wales given the historical stature of Llanelli.

This is the club of legends such as Phil Bennett, Ray Gravell, Delme Thomas, Stephen Jones and current WRU chairman Ieuan Evans.

Llanelli celebrated its 150th anniversary last year and though it became semi-professional in 2003 with the creation of regional rugby, it has never previously had to withdraw from competitive fixtures during peacetime.

And there will be concerns that they are not the last famous name to face such a fate.

It marks yet another low point in what has been a tumultuous year for Welsh rugby both on and off the pitch.

Financially the game in Wales is on its knees and the four professional regions are braced for major cut-backs – as much as £2m each – next year.

That was part of the reason for the major reforms of the Welsh Rugby Union board that were voted through by clubs on Sunday – as well as a response to claims of sexism and misogyny within the governing body.

However, a deal between the WRU and Cardiff, Dragons, Ospreys and Scarlets has yet to be agreed, despite several assurances one was imminent.

That has forced the regions to drastically cut the size of their squads for next season, leading to several leading players to join clubs elsewhere.

Scarlets head coach Dwayne Peel expects to see his current 50-strong squad reduced to as few as 38 for next season.

The regions have said they will need to lean on their academies and semi-professional clubs even more next season and that will, in turn, leave Llanelli RFC short of numbers.

By a cruel twist, this all happens just as the Premiership is due to expand next season from 12 to 14 teams, meaning a 26-game season for each club, with the addition of cup games.

Llanelli are currently bottom of the Premiership, having lost 14 of their 16 matches so far and have not won a game since October.

They have also conceded more than 40 points in a game seven times this season, though they will fulfil their remaining fixtures.

It has yet to be confirmed what will happen with the 2024/25 season, with a mooted competition featuring an ‘elite eight’ clubs under discussion.

Scarlets fully support the decision and general manager Jon Daniels added: “Llanelli RFC has been and continues to be a vital part of the development of young talent for the Scarlets.”