The fear and panic that has gripped rugby league since Leicester's chief executive, Peter Wheeler, last week predicted that top Super League sides would defect to rugby union exploded into anger yesterday amid accusations that Twickenham is preparing to underwrite the cost of recruiting top players.

Although the English Rugby Football Union (RFU) denied reports that it will provide each of the 12 Premiership clubs with £125,000 sterling to cherry pick new league talent as part of an agreement it hopes will end the six years of in-fighting,

Twickenham's chief executive, Francis Baron, admitted that it will help any player who wishes to change code.

"We have agreed to work together where players from rugby league wish to make a career change and to agree how we can assist the process. If a player has decided to make the change it is only common sense that we and the clubs work together to make sure the transition can be effective."

Although Tom Walkinshaw, Gloucester's owner, added, "There will be no wholesale recruitment of rugby league players", his words were greeted with scepticism among league circles, particularly as Gloucester will today officially unveil Henry Paul, the Bradford Bulls stand-off, as their latest signing in a deal believed to be worth £250,000 per year.

The 27-year-old New Zealander played for the Kiwis in a rugby league international 12 days ago but, because of a maternal grandfather born in Liverpool, would be eligible to follow another league convert, Jason Robinson, into the England team.

Baron dismissed as "pure speculation" suggestions that the RFU were contributing to Paul's wages, but with each of the Premiership clubs yesterday being guaranteed £1.6 million as part of the peace deal, there is clearly money available to finance further raids.

It is known, for example, that the Leeds league youngster Kevin Sinfield was approached by Leicester after he and Bradford's Leon Pryce had been targeted by the England union manager Clive Woodward, although both players have subsequently signed new contracts with their Super League clubs.

League insiders also point to the fact that union clubs will need fresh blood following yesterday's agreement between Twickenham and the Premiership clubs to limit the top players to 32 games a season to prevent burnout. They will also be given an 11-week break in the summer.

"If what's been suggested is true it is a real challenge to the game, no question about it," said Gary Hetherington, who has a foot in both camps, as the chief executive of Leeds Rugby Limited which controls both the Leeds Rhinos Super League club and also Leeds Tykes, who will play in union's Premiership next season.

"This is taking politics in sport to a completely new dimension. This is a manoeuvre to damage another sport, that's political, it's more than competition, and I'm not aware of that happening before.

"My response to it is that firstly, from a rugby union point of view it is a serious misuse of money. A lot of clubs will get their fingers burnt - I think they've got carried away with the success of Jason Robinson.

"Secondly, it is sending out a very poor message to all the quality rugby union players around the country. And thirdly, it does appear to be a mechanism to damage rugby league, particularly at Super League and international level.

"If that is the intention, it does appear to be much more than simply recruiting 12 players. It is much more cynical than that. And I would say it is misguided."

Shane Richardson, Hull's Australian chief executive, was even more direct. "If they want a war, they can have one," he said. "We'll be fighting the war as a minor nation, because they have more money. But remember Vietnam. This is typical of the old school tie attitude of rugby union that thinks they can ride roughshod over everybody else."

The rancour between the codes takes the gloss of an announcement of an eight-year deal between Twickenham, its Premiership clubs and players to finance and run the professional game.

The agreement will see a joint venture company, owned 50 per cent by the clubs and 50 per cent by the RFU.

Twelve England academies will be set up at each Premiership club who will each receive £1.6 million of funding from Twickenham this season and £4 million per season for each of the next seven years of the agreement.