Bath are set to offer the Dragons a substantial transfer fee to sign Wales number eight Toby Faletau for next season.
Faletau is contracted to the Welsh region until 2014, having signed an extension following his impressive outings at the 2011 Rugby World Cup.
The 22-year old has received plenty of interest from leading clubs in Europe and the Dragons may now decide to accept what is reported to be a "six-figure transfer fee" from Bath according to the South Wales Evening Post.
Wales international prop Paul James has made a strong start to his career with the West Country club after joining from the Ospreys, with millionaire backer Bruce Craig not afraid to open his pockets in order to make Bath a force once again in England and in Europe.
Rated as one of the best number eights on the continent, the acquisition of Faletau would be a coup for Bath, but also cause great concern over the future of the Dragons, with Faletau's club and country team-mate Dan Lydiate also departing the region at the end of the season.
"Toby like Dan and any other talented young player will be targeted by other clubs that have more resource in terms of finance available," said Dragons director of rugby Robert Beale to the South Wales Evening Post.
"You're competing against teams who have huge budgets.
"I'm not suggesting that we go to those sorts of levels, but...if regional rugby and the four regions are to compete seriously in Europe then we need to increase levels of funding from wherever avenue they may come."