Rugby Australia has taken a united stance on the proposed competition R360, alongside seven other national unions, stating players would be ineligible to play Test Rugby at this current stage.
This includes New Zealand, South Africa, Ireland, England, Scotland, France and Italy.
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The remarkable development sees the eight bodies issue a combined statement on Wednesday (AEST), 'urging extreme caution' against players joining the competition, set to launch next year.
"As a group of national rugby unions, we are urging extreme caution for players and support staff considering joining the proposed R360 competition," the statement read.
"We all welcome new investment and innovation in rugby; and support ideas that can help the game evolve and reach new audiences; but any new competition must strengthen the sport as a whole, not fragment or weaken it.
"Among our roles as national unions, we must take a wider view on new propositions and assess their impact on a range of areas, including whether they add to rugby's global ecosystem, for which we are all responsible, or whether they are a net negative to the game.
"R360 has given us no indication as to how it plans to manage player welfare; how players would fulfil their aspirations of representing their countries, and how the competition would coexist with the international and domestic calendars so painstakingly negotiated in recent years for both our men's and women's games."
The competition has reportedly been targeting players across the sporting landscape, from current Wallabies to potential code-hoppers from the NRL.
With limited information available, the unions have banded together to state that players will not be eligible for international selection based on the current available information.
"The R360 model, as outlined publicly, rather appears designed to generate profits and return them to a very small elite, potentially hollowing out the investment that national unions and existing leagues make in community rugby, player development, and participation pathways," the statement continued.
"International rugby and our major competitions remain the financial and cultural engine that sustains every level of the game - from grassroots participation to elite performance. Undermining that ecosystem could be enormously harmful to the health of our sport.
"These are all issues that would have been much better discussed collaboratively, but those behind the proposed competition have not engaged with or met all unions to explain and better understand their business and operating model.
"Each of the national unions will therefore be advising men's and women's players that participation in R360 would make them ineligible for international selection."
