The Scottish Rugby Union have confirmed they are exploring the possibility of forming a professional team in England.
Reports claimed the SRU would push for the London-based team to play in the Celtic League.
An SRU statement confirmed the idea was being considered as part of a "wide-ranging strategic review" of their professional teams.
It read: "We recognise that professional rugby in Scotland is still struggling to fully take off at pro-team level and the board believes it has a duty to its stakeholders to radically examine all aspects of the professional game.
"The review is examining levels of investment, squad sizes, relationships with and participation in the Heineken Cup and Magners League, third-party investors, pro-team numbers and locations, training and playing facilities and academies.
"Considering the merits of having a pro team based in England is not new and is something worthy of Scottish Rugby exploring with an open mind.
"The board believes it has a duty to carry out such a review of an essential part of its business and indeed stated last year, when the Edinburgh pro team was sold, that there would be further examinations of the pro team game.
"As with many sports businesses, a rigorous appraisal of the sport's key delivery channels is essential. The review will be concluded before the end of this season."
The SRU are about Â£23million in debt and Scottish pro teams Glasgow, Edinburgh and Borders struggle to attract crowds to match their counterparts in Ireland and Wales.