NEWPORT Gwent Dragons trio Taulupe Faletau, Hallam Amos and Tyler Morgan are likely to sign dual contracts after the Welsh Rugby Union confirmed it has sent out offers to 12 players, with Dan Lydiate edging closer to a move to the Ospreys.

Dual contracts were announced as part of a new Rugby Services Agreement that the governing body and regions signed in August, with the WRU providing 60 per cent of the funds.

Negotiations have taken place between the quartet and the Union as to how to spend the £3.3million pot with regional bosses keen for the money to be spent on keeping players in Wales rather than tempting them back from overseason.

However, Lydiate became available after negotiating an end to his unhappy spell in Paris with Racing Metro.

The RSA states that he should first be offered to his region of origin but the blindside flanker is understood to favour a move to the Liberty Stadium rather than returning to Rodney Parade.

That has led to some horse trading with Wales regular Faletau, once-capped 20-year-old full-back/wing Amos and uncapped but highly-rated 19-year-old centre/wing Morgan being offered dual deals.

Wales boss Warren Gatland has declared that the Lydiate situation had “all been sorted out” and that other offers had been sent out with the players’ names set to be released once the deals are signed.

“A lot of extremely hard work has gone into reaching this landmark stage and we are now in the final part of this first and pivotal negotiation,” said WRU chairman Gareth Davies.

"With contracts being issued to a significant number of players it shows we are all determined to work together for the benefit of Welsh rugby.

"We have to work in unity and this is an example of all parties working together to achieve the best outcome.”

Faletau signed a fresh Dragons deal last summer taking him up to June 2016 while Morgan and Amos are currently on long-term deals with the Rodney Parade region.

Lydiate made 85 appearances for the Dragons before leaving for Paris on a bumper deal in the summer of 2013.