The cash-strapped Queensland Rugby Union is seeking serious financial assistance from the Australian Rugby Union.

The QRU on Thursday night confirmed it had initiated financial discussions with the national governing body following a report the state union would received a significant cash bail out.

The ARU grant, to be announced in the coming days, was designed to prevent the possibility of the QRU being placed into administration, according to the on-line News Ltd report.

The discussions between the unions come as Queensland is expected to declare another multi-million dollar loss at next month's annual general meeting.

In a statement, the QRU confirmed it had discussions with the ARU "about a number of issues facing the code" in the state.

Chairman Rod McCall and chief executive Jim Carmichael had initiated the talks.

"We have been to see the ARU and have discussed financial and other issues," Carmichael said.

"We are seeking ARU assistance and are working through the possibilities. At this stage we are still to reach resolution.

"The difficult challenges faced by Queensland Rugby have been growing over a number of years.

"The ARU and ourselves are working together to develop short, medium and long term solutions."

The request for financial assistance comes after many years of the QRU denying it would ever follow the lead of the NSW Rugby Union a decade ago when the national body bailed it out and ran the state's affairs.

Queensland's financial woes have been exacerbated in the past four years by poor attendances and a drop in revenue from their move to Suncorp Stadium.

The ARU also confirmed Queensland officials saw the national body on a "range of issues" but would not comment about the state's financial position.

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