World Rugby is set to spend Stg1.2 million ($2.2m) annually over three years on two Pacific Island teams to help them join Super Rugby in 2022.
The support package will include administrative help to facilitate the entry of Fijian Drua and Moana Pasifika into the competition, subject to New Zealand Rugby Board approval and key conditions being met.
Both franchises will also be supported by their respective unions and private equity funding.
“From a strategic perspective, it provides the best-possible platform and pathway for the islands to reach their potential,” World Rugby chairman Bill Beaumont said in a statement.
“On a human level, this is absolutely the right thing to do.
“It’s great for the players, allowing them to make the choice for the first time to be part of a local professional team at the top level of elite club rugby.”
Fiji Rugby Union chief executive John O’Connor believes the development is one of the most important in the history of Fiji rugby, labelling it a “dream come true” for Pacific Island rugby.
Fijian Drua, launched in 2017, compete in the Australian National Rugby Championship.
They won the title in 2018.
An invitational Moana Pasifika side were beaten 28-21 by the Maori All Blacks in a one-off match last year.
The COVID-19 pandemic put paid to the intercontinental Super Rugby competition last year, prompting New Zealand and Australia to introduce domestic tournaments – Super Rugby Aotearoa and Super Rugby AU.
A Trans-Tasman competition will start on May 14.
South Africa had voted last year to pull their four major franchises from Super Rugby and explore expanding their presence in the European PRO14 competition.