"I've looked on with interest and I know England went through a similar process when the clubs and the union were able to agree a binding agreement," said Ruddock, whose Worcester side host Harlequins in the EDF Energy Cup this Sunday.
"That is now in place with the Elite Player Squad so the clubs know the release period involved and are well compensated for that.
"They need to get that sort of agreement in place for Welsh rugby."
Ruddock believes that talks between regional and union officials are particularly important if Wales want to successfully challenge South Africa, New Zealand and Australia next month.
The 49-year-old ex-Swansea and Wales B back row feels that any difficulties off the field should not be allowed to interfere with the players' quest to build on their second Grand Slam in three years.
"The talks around the table are very important because the players don't want to be caught in the middle of things for an extended period of time.
"They need to work everything out so the players are allowed to get on with what they are doing. They've just won a Grand Slam and their focus should be taking on the Tri-Nations sides."