A new five-year agreement outlining plans to develop elite rugby union in Wales has ended a feud between the Welsh Rugby Union (WRU) and the country's four regional teams.

The deal will see the four regions - Newport Gwent Dragons, the Ospreys, Cardiff Blues and the Scarlets - receive an increase in funding from £3.6m to £6m from the WRU each year as part of efforts to provide greater financial security. Matchday squads for all regional fixtures will now have to contain an average of 17 Wales-qualifed players under the terms of the agreement, while players picked for international duty will be released by the regions 13 days ahead of the first game of a Test series.

It is hoped that the new Participation Agreement, which also ends the prospect of High Court action over a row surrounding the issue of player releases, will also ensure that Wales-qualified players are given the best possible opportunity to reach their full potential. WRU chief executive Roger Lewis said: "This agreement is an historic landmark for Welsh rugby and will help shape the future of our national game. At its heart it gives the regions the financial security to carry out a mandate to recruit and develop Welsh international players.

"We have achieved an agreement which is rooted in the best interests of the whole of Welsh rugby because a winning Wales will deliver the support and commercial success we need to sustain rugby at all levels across our nation." Roger Gallacher, chief executive of Regional Rugby Wales, added: "This will deliver a vital financial boost to the Regions and ensure there is a true focus on doing our level best to keep Welsh qualified players in Wales.

"This agreement will give us the strength to meet the challenges of the future and make decisions which will ultimately benefit the whole of Welsh rugby."