No decision has yet been taken to scrap the Borders professional team, the Scottish Rugby Union has insisted.
Borders have been struggling again this season
Sunday newspapers had claimed that the decision to disband the Netherdale side had been taken six months ago.
But an SRU spokesman said: "We are seeking franchise arrangements and the motion is that, failing that, we should fully fund two professional teams.
"But there has been no decision by the general committee to dispense with any of our present three sides."
There are fears that the recent civil war within the SRU has led not only to resignations within the executive board but to the withdrawal of parties interested in running and funding Edinburgh.
The Borders lie bottom of the Celtic League for the second year running and that would leave Edinburgh and Glasgow as favourites to receive continued SRU financial backing.
And Edinburgh captain Todd Blackadder followed his side's excellent Heineken Cup victory over Perpignan by calling for more support from the national body.
"Today was a powerful statement about the state of Scottish rugby," he said after his side broke their cup duck in front of a paltry crowd.
"It would have been nice to have got more backing after our success last season to take the club forward.
"You could say that we got the same money this year, but treading water is just a slow way of drowning.
"Scottish teams need to be properly resourced and need to go out and win."
Glasgow coach Hugh Campbell fears he could lose his top players unless the bitter internal war is resolved soon.
"With the way the guys are playing at the moment there is an awful lot of interest in them coming from elsewhere," he said.
"The guys are very concerned about their futures, so we need to get this situation sorted out soon.
"The players have discussed it openly. It is something of great concern to them."
The internal battles come in the lead up to a special general meeting on 30 January to decide the future direction of the SRU.
Details of amendments to original motions will be released by the SRU on Monday.
It is being suggested that the general committee will accept a restructuring of the game's hierarchy along the lines proposed by former chairman David Mackay and chief executive Phil Anderton.
The pair resigned after the committee said it was opposed to the new direction and passed a vote of no confidence in Mackay.
However, it is also being suggested that the proposal from Heriot's would be accepted as long as the pair are not reinstated by the SRU.