The Australian Rugby Union will explore the possibility of private investment in the country's Super 14 teams as part of a move to ensure the struggling code's future.

The ARU announced a wide-ranging strategy for rugby's future in Australia as it battles AFL, rugby league, soccer and a loss of $8.4 million last year.

"If we want rugby to have a greater footprint in Australia, if we want to have a stronger competitive position against the other major football codes, then we need to advance," ARU chairman Peter McGrath said in a statement.

"We need to push for an expansion of Super rugby and explore the introduction of private equity, which has not previously been permissible under ARU policy.

"Private equity is not a dirty word. When managed correctly, it has been a major contributor to the success of various sports around the world.

"We are now a mature, professional sport. It is time to look at embracing it."

ARU chief executive John O'Neill said moves to boost the code had been nutted out at a three-day planning conference in January.

"Doing a bit better than we are at present is not enough," O'Neill said.

"We have to do more than tinker. The challenges we face as a game have been outlined previously and with rugby in a position to control its own destiny, doing nothing is not an option.

"We need transformation at the professional level, and that can be achieved through the injection of capital from alternative sources that have an affinity and affection for the game.

"Private equity, however, will need to be tightly controlled and controlled nationally to ensure enduring benefit for the code while also recognising the interests of equity partners."

The ARU signalled it will push for "a dramatic transformation" of the Super 14 competition, a goal which will coincide with the tournament's current bank-rolling television deal concluding at the end of next year.

It said it would also attempt to address participation figures, which fell for the first time in a decade last year.

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