The English RFU is considering the possibility of co-hosting the 2015 Rugby World Cup with Ireland, Scotland and Wales after the British Government refused to sanction the €86million ‘tournament fee’ required by the International Rugby Board (IRB).

The RFU had been determined to go it alone in bidding for the tournament but it has emerged government ministers have been in talks with the neighbouring unions and it is understood they now favour a joint bid by all four countries.

Although no agreements have been reached on underwriting the €86million, there have been proposals the government and the Scottish executive could both contribute towards the tournament fee for a joint bid.

Only the RFU oppose a joint bid; they believe co-hosting the event would severely cut the revenue they could expect from the tournament if they have to share it with Ireland, Scotland and Wales.

Ministers are now hoping the four unions can settle their differences, having been persuaded the timing of the tournament in September and October - during a busy football period - would mean rugby stadiums in the other nations were required.

The RFU had hoped to use the Millennium Stadium in Cardiff for some matches without involving Wales as official co-hosts.

Four host nations would mean the countries could host a pool and a quarter-final each.

Italy and South Africa are both strong rivals for the 2015 tournament and their governments have already agreed to guarantee the €86million.