Rugby league in Australian is set to be reunited in a new 20-team competition after a marathon round of Australian Rugby League meetings endorsed, in principle, a peace deal with Super League.

At a news conference on Friday, it was announced that the number of teams in the united premiership, known formally as the National Rugby League Competition, would be reduced to 16 in 1999, with financial incentives offered to encourage team mergers.

There was no immediate statement from Rupert Murdoch's News Ltd, which runs Super League.

The ARL Chief Executive, Neil Whittaker, said a further two teams would be cut in 2000.

However, he said it had been agreed that the number of Sydney-based teams would be no fewer than six and no more than eight going into next century.

Friday's agreement ended three years of battles for control of the game and its pay TV rights estimated to have cost more than $US550m.

It came after more than seven hours of discussions between ARL clubs, directors, the New South Wales Rugby League (NSWRL) board, vice presidents and representatives of the Country Rugby League and Referees Association at the Sydney Football Stadium.

Mr Whittaker said the agreement provided for both News Limited and the ARL to work together for the benefit of rugby league.

"Neither side has control over the other and both will be in a position where they will have to look to the good of the game."
 

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