The steps were agreed by the WRU board last week and the new National Amateur XV could play its first fixture at the end of the 2005/2006 season.
The new, five team regional tournament - the Scarlets' region will be split into North and South XVs - will be the stepping stone to the Wales Amateur side with home and away fixtures being played on Tuesday nights during the November international and Six Nations periods.
The 20 teams who currently play in the two north Wales divisions in the National League will be joined by Llangefni and Ruthin in the 2006/2007 campaign when all teams in that region return to play in their own league and cup competitions. Llangefni won Division 4 North last season and then won a play-off match that enabled them to play in Division 3 West this season, while Ruthin will play in Division 3 South/East.
The WRU board's decision means that as from the 2006/2007 season no teams from north Wales will be able to play in the WRU National League system outside their own region.
"Developing our game throughout the various communities of Wales is vital to Welsh rugby if we are to continue to improve at all levels," said WRU chief executive Steve Lewis.
"The decisions taken by the WRU Board last week are the first steps in enhancing and inspiring the game at local level to work on the development of their players and point them to the top.
"The creation of a Wales Amateur XV, with a new regional tournament beneath it, will give a new group of players the chance to play for their country and don the Welsh jersey. We believe that will give those young, aspirational players up and down the National League structure the chance to showcase their talents and push for contracts with Premiership and Regional teams.
"France already have an amateur team and the RFU have an England Counties XV. We have been in discussion with FIRA-AER about this development and they have 38 international teams across Europe who are all looking for new opposition.
"The intention is to give those players between 20-25 the chance to push their claims and it will be great to have the bulk of the clubs in Wales vying to produce international players once again."
The WRU are set to back these new moves with substantial financial backing and will be seeking coaches and selectors to boost the new regional tournament.
"I'm sure the two teams from north Wales who are currently playing outside their region will be disappointed at having to return to play with their neighbours from 2006, but this step has been taken after looking long and hard at the effect of travelling twice a month to south Wales by teams from the north," added Lewis.
"The nearest fixture for Llangefni this season will be 94 miles away in Aberystwyth, while Ruthin face a round trip of 200 miles or more for each away fixture in Division South/East. We are asking amateur players at the heart of the community game to give up at least 13 Saturdays each season in order to get their enjoyment from the game.
"That takes a huge toll on them, their clubs and the quality of their performances. What we are offering them from 2006 are reduced travelling, old rivalries, the chance to shine in the WRU's Konica Minolta Cup and a new route to improve via the regional tournament and the Wales Amateur XV."