A club from south Wales is among the frontrunners to join rugby league's professional ranks next season.
A restructuring of the LHF National Leagues means a new club will be invited to join the second division.
Coventry and Bramley are thought to be two other clubs interested in joining League Two at the start of next season.
But a Wales club, based in Bridgend and with the backing of ex-Warrington and Wales international Mike Nicholas, is one of the favourites to be admitted.
"There is a lot of talent out there," said Nicholas.
"We were already reaching the stage where people are choosing to play rugby league rather than rugby union."
If admitted, the club would target promotion to Super League and aim to recruit the majority of their players from the eight-team Welsh Conference.