All four Regions and Pro Rugby Wales have been fully engaged in the National Dual Contract selection process which was controlled by the Wales Head Coach.

Under the terms of the Rugby Services Agreement (RSA), where applicable, players will normally remain with their original Regions unless there are specific and agreed reasons for them to join a new team.

National Dual Contracts were agreed by the WRU and all four Regions before being included in the new RSA.

Lydiate is on the list after being released early from his contract with Racing Metro, making him available for consideration.

Today Warren Gatland confirmed the Lydiate decision regarding a National Dual Contract had been reached and said twelve contracts, including his, were being sent out to players or their agents.

A further group of players could then be considered depending on the outcome of the offers being made today.

Under the terms of the RSA £8.7m a year is allocated from the WRU for the Regions to spend on Welsh qualified players with £2m of that investment for NDC's topped up to £3.3m with a commitment of £1.3m from the Regions.

The WRU Group Chief Executive, Roger Lewis, said: "This is a landmark day for Welsh rugby and I am grateful to all involved for the level of cooperation this announcement signifies.

"National Dual Contracts will help us keep international class talent here in Wales available for Regional rugby and for international selection.

"The WRU has been actively attempting to introduce National Dual Contracts for some two and a half years so this is a real landmark moment for Welsh rugby.

"Dan Lydiate suddenly became available while Warren was preparing his list of National Dual Contract candidates, which offered us the opportunity to bring a key international player back to Wales.

"All the players on National Dual Contracts will get the best coaching and conditioning whilst having their careers managed in ways which will ensure they achieve and maintain their full potential with the Regions and Wales.

"The aim of the contracts is to stem the flow of our best talent abroad and to ensure the players staying in Wales will have the very best care to prolong their careers at the highest level.

"I also want to thank Warren Gatland for the extraordinary work he has done in handling the negotiations for these contracts on behalf of the WRU and our colleagues in the Regions for recognising the significance of this initiative.”

The Head Coach of Wales, Warren Gatland, added: "This is an important step forward for Welsh rugby and we will reap rewards in playing standards over the long term.

"Any player on a National Dual Contract will remain in Wales with a Region where their development and welfare can be monitored by me and my national squad coaches, conditioners and medical staff.

"I want to personally thank the staff from each of the four Regions for their help in getting the National Dual Contracts up and running.

"In particular I would really like to thank the Regions for their help in facilitating Dan Lydiate's return to Wales.

"It wasn't something that we had envisaged so early or budgeted for so I would like to thank them for their help.

"We can now focus on ensuring all our best young players are aware that the best way for them to realise their talent in full is to stay in Wales under the new structure we have created.”

Twenty-seven-year-old Lydiate has been capped 39 times by Wales and featured in all three Tests for the British and Irish Lions on the victorious 2013 tour of Australia.

He made his RBS Six Nations debut in 2011, helped Wales to a Grand Slam in 2012 and also won the Player of the Tournament title that year.