NEWPORT Gwent Dragons will go into administration this week, possibly later today, confident they will come out of it with the region not only surviving, but in a much stronger position to move forward.

Meetings with the players, the coaching and administrative staff and others last week have indicated they are prepared overall to accept salary cuts and other financial restrictions necessary to prevent the region suffering a massive debt.

And as most of those meetings came before the Dragons' superb victory away to Cardiff Blues on Friday night, the board believe the goodwill is there for a restructuring package to succeed.

If it does and it is along lines favourable to Dragons director Tony Brown, the man who has pumped millions of pounds into Newport RFC in recent years, it is believed he may be prepared to offer further backing of over £250,000.

Board members would not comment today ahead of further meetings, but it is understood accountants Price Waterhouse Cooper will handle the administration.

It's possible that after administration, the region could be a partnership between Newport and the Welsh Rugby Union with Ebbw Vale out of the equation.

However, that is by no means certain as it is understood the WRU have not accepted the 50 per cent partnership bought and offered by Celtic Warriors chief Leighton Samuel after Pontypridd pulled out of that region, and that the Warriors could yet go down the administration road.

It is understood Brown made an offer to buy out Ebbw Vale a few weeks ago but that they wanted more than he was prepared to pay.

Without restructuring the Dragons, despite funding of around £1.74m from the WRU, are heading for debts of between £1m and £2m by the end of the season.

This is largely because of a failure to attract virtually any sponsorship, co-operate deals and advertising as a result of the rows over the region's name in the build-up to the season.

It is also due to some large salaries (one player is believed to be on £80,000 plus options which could earn him another £20,000 a season).

Part of the restructuring is likely to involve parting with some players and staff on agreed terms.

By going into administration, the Dragons effectively get rid of their current debts and initially have around ten weeks to agree a restructuring programme.

But it is possible to remain in administration for up to two years so long as progress is being maintained.

If the restructuring fails the likely outcome is for the company running the Dragons, Gwent Rugby Ltd., to go into liquidation which effectively means the end of the region.