The Council will give the WRU Â£3 million over the next three years to fund their national and regional academies, and Hansen says the development of rugby in Wales was looking better than ever.
"There's light at the end of tunnel, and every day, you see a bit more of that light," the New Zealander said.
"With this funding and moving into the regional structure, I'm sure we'll see better results in Europe through better performances.
"There will be hiccups along the way, but that's the way the world goes around. Very quickly, there will be some very competitive sides in this country.
"There's definitely some excitement among the players and we're seeing players coming back to Wales from English clubs. Good players like playing with good players."
WRU boss David Moffett said the Sports Council funding, on top of the recently announced Island Farm national academy near Bridgend, signalled an "incredibly exciting period in Welsh rugby".
"There's a view out there that things are changing in Welsh rugby, and there are companies who want to be part of it.
"The Sports Council have clearly identified the steps the WRU are taking to change the fortunes of our national game and empower the very many young and talented players in Wales to compete with the best players in the world."
Of the Â£3 million, Â£1.5 million will go to the Bridgend academy, which will also house the Celtic Warriors; Â£500,000 to the Nash College for the Gwent Dragons academy, Â£500,000 to Llandarcy Park for the Neath-Swansea academy and Â£500,000 each to the Llanelli Scarlets and Cardiff Blues.
Council chief executive Huw Jones applauded Moffett's actions since taking over as CEO of the WRU in December, saying there was "more openness" and "more transparency" at the Union, which helped the new partners agree terms.