GWENT Dragons will play their Celtic League and Heineken Cup matches at Rodney Parade next season, insists Ebbw Vale chief Marcus Russell.

But he says they will not pay an "exorbitant" price for use of the facilities and claims Newport have added a profit margin of £105,000 into their demands.

He also confirmed the Dragons had considered at least five other venues, including one in England, but only as back-up facilities for Europe should Rodney Parade be frozen off or otherwise unavailable.

"The games next season will be played at Rodney Parade," said Russell. "I don't think Newport would be so silly as to evict the top side in the county from their ground.

"We were negotiating quite well until Newport decided they wanted to build a six-figure profit sum on top of the costs.

"But I am confident we will come to a sensible agreement with Newport.

"The Gwent Dragons have to play in the capital city of the county on the best ground with the best facilities - but not at exorbitant prices.

"Our differences will be sorted out. We have had many problems up to now but they have all been resolved and so will this one."

Newport director Martyn Hazell said the reason the costs had gone up was that Tony Brown, who had been prepared to pay the costs associated with running rugby at Rodney Parade, was no longer involved in the Gwent set-up.

Meanwhile, Russell said the Dragons had "a fantastic marketing plan" for the new region to be announced soon.

He added that the regional launch would take place by the end of the month.