Ospreys chief executive Mike Cuddy has issued a stark warning after he revealed that James Hook turned down over £1m to join French side Perpignan.
Cuddy has told the WRU that they face losing more Welsh players to the riches across the channel with Lee Byrne also confirmed to be joining reigning French champions Clermont.
Wales coach Warren Gatland currently has a policy in place which means Welsh players plying their trade abroad risk missing out to home-based players.
But Ospreys coach Scott Johnson has urged the WRU to offer top-up payments to clubs to keep the top players in Wales.
Hook started each of Wales’ RBS 6 Nations matches making his first appearance in the fly-half role for two years in the 24-6 win at Murrayfield.
But after five years with the Ospreys, the 25-year-old has signed a three-year deal with Heineken Cup semi-finalists Perpignan.
“In two or three years' time we could have the whole Welsh team not playing in Wales,” said Cuddy who is also set to lose Wales scrum-half Mike Phillips to the Top 14.
“We made James Hook a huge offer, had a sponsor in to make him an offer of over £1m to help us over three years and that wasn't enough.
“With the money that the French teams are pouring out at the moment unless we do something about it in two or three years' time we could have the whole Welsh team running out not playing in Wales.”