English and French rugby union clubs have confirmed that a new European competition will be formed for next season.

The tournament, which is open to teams from all three leagues across the continent, has been named the Rugby Champions Cup.

Talks to keep the Heineken Cup going recently broke down between the two parties due to disagreements over revenue distribution, qualification methods and scheduling.

Premiership Rugby, who were tasked with forming a new tournament by clubs on both sides of the Channel, have now announced that they are a step closer to setting up a new format for next year.

"The competition will be based on the principles of qualification on merit, a strong competition format, equality between the leagues, higher commercial values for the teams and expansion into new European markets," read a statement on Premiership Rugby's official website.

"The Top 14 and Premiership Rugby clubs have already confirmed their participation in the new competition and a joint working group has been created to prepare all necessary elements in good time for the 2014-15 season.

"Further details concerning the competition format, marketing and financial aspects of the Rugby Champions Cup will be communicated in October."

The organisers of the Heineken Cup recently claimed that further talks to save the tournament were due to be held in October.