A source out of South Africa today told 1 NEWS that two teams from the republic, including the Port Elizabeth-based Kings, and one from Australia will be axed.
The other sides will be decided by the Australia and South Africa rugby unions.
Both unions are deliberating about which teams to drop, taking into consideration possible mergers.
But the 1 NEWS source today confirmed three teams would be cut.Yesterday, following a SANZAAR meeting inLondon last week, the Free State Cheetahs CEO Harold Verster declared his side was safe, and that the competition would be reduced to 16 teams.
New Zealand Rugby had advocated at last week's SANZAAR meeting for three teams to be cut from the 18 team tournament.
The majority of South African and Australian sides have struggled financially and underperformed on the pitch, while the current conference system was confusing for fans.
Both South Africa and Australia have also been hit by significant player losses to Europe and Japan.
At this stage, the embattled Japanese Sunwolves will remain in the competition.
SANZAAR has put a May deadline to finalise which teams will be cut from the competition and to finalise the format for 2018.
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