The decision brings to an end three years of cross border activity which has brought benefits to both Unions.
However, the expansion of the Scottish District set-up coupled with the need to reduce the demands on the leading players were influencing factors in settling on this agreement.
It was felt that 22 league fixtures represented an unacceptable high figure, when combined with the other demands on players in a pre World Cup season.
Secretary of the Welsh Rugby Union Dennis Gethin said "A fully fledged Celtic League is of paramount importance and we are working towards achieving that goal. To avoid overplaying our top players and for administrative reasons, the forthcoming 2003 World Cup will delay its implementation. However we are confident that as soon as it is practicable, we will have in place a cross border competition of which we can be proud and which will enhance playing standards. We thank the Scots for three excellent seasons of competitive club rugby".
SRU Director of Rugby Jim Telfer said " When you consider that our top players will play 11 internationals next season and a minimum of seven Celtic League games and a minimum of six Heineken Cup matches, plus our own provincial competition, them we will be already around the optimum 30 games. We have to guard against player burn-out and that becomes an even more important issue as the 2003 Rugby world Cup looms"
Ahead of their SSE SWALEC Bowl Final clash with Taffs Well at Principality Stadium on Sunday, Burry Port share their #FABXV nomination with WRUTV in the search for Welsh rugby's greatest volunteers. Everyone can get involved by sending nominations via twitter to @WRU_Community using the hashtag #FABXV
Cardiff Blues prop Gethin Jenkins and Ospreys centre Ben John look ahead to the first game at Principality Stadium in Saturday's double header which is promising to be a special occasion for all Welsh fans.
Carmarthen Quins Director of Rugby Ian Jones and committee member Jeff Thomas along with Llandovery chairman Handel Davies look ahead to Sunday's SSE SWALEC Cup showdown where both teams are out to prove 'West is best'
SWALEC ambassador Shane WIlliams is looking forward to Sunday's Finals Day where the Cup, Bowl and Plate offers a great opportunity for players and teams to experience the magic of playing at Principality Stadium
Carmarthen Quins coach Richard Kelly believes it is an exciting time to be part of the Scarlets region as his side take on local rivals Llandovery in the SSE Swalec Cup final on Sunday, as WRU TV's Graeme Gillespie discovers
Scarlets long serving prop Phil John talks to WRU TV's Graeme Gillespie about Judgement Day IV and SSE Swalec Cup finals day. The last time Llandovery were in the cup final in 2007, the Drovers claimed the spoils with Phil playing a major role in the engine room.
Meet Aberdare coach Luke Thomas whose #FABXV nomination goes to super volunteer Daz with a whopping 10 things he does for the club each week, all except the ironing! You can also join in the search for Welsh rugby's greatest volunteers, by sending your nomination via twitter to @WRU_Community using the hashtag #FABXV
SSE Swalec Cup kings Pontypridd travelled to Swansea, fully expecting a return to their second home but Llandovery had other ideas as they also sought victory in the semi-final to earn the right to play the final at Principality Stadium