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"
Beating Merthyr has boosted Carmarthen Quins hopes of reaching a top eight spot in the Principality Premiership. Quins captain Haydn Pugh is delighted with his team's progress and is determined that everyone from the Under 6s through to the senior team, enjoys the ride.
When the Wales squad were asked to nominate individuals who played a big part in their early playing days, Wales and Dragons full back and wing Hallam Amos thought of his former Monmouth School rugby coach John Bevan.
Sam Cross and Luke Treharne have been named as co-captains of the Wales Sevens side as head coach Gareth Williams names his 12-man squad to play in the first leg of the HSBC World Series in Dubai next weekend.
Bedwas head coach Steve Law and players Nicky Griffiths and Alun Rees extol the virtues of the close knit club as they prepare to host third place RGC 1404 - who are one place head of them on the Principality Premiership points table - on Saturday.
Many of the Wales squad have said Diolch (thank you) to someone who played an important part in their early playing days by nominating them to be invited to the Wales v South Africa match. One person, Gowerton Comprehensive geography teacher Mr Dean Mason was nominated by two of his former pupils, Dan Biggar and Sam Davies.
The second WRU disability rugby pilot has been delivered, this time in Caerphilly schools, culminating in a festival at the Caerphilly Centre of Sporting Excellence, Ystrad Mynach tomorrow. Plans are in place to set up a Disability Rugby Club in Newbridge to provide long-term playing opportunities.
WRU TV: Hear from inside the Wales camp as Neil Jenkins discusses this weekend's clash with South Africa and how the squad are looking to put in a strong performance to round of the 2016 Under Armour Series