A proposal to radically revamp New Zealand Rugby's governance structure failed to be approved at a special meeting in Wellington on Thursday.
The proposal to have a fully independent board, which was backed by the NZ Rugby Players' Association and the NZ Māori Rugby Board, received only 31 votes in favour while 59 were opposed.
Instead Proposal 2, a Provincial Union Governance model, was passed securing three places on the nine member board for people with previous provincial board experience.
Earlier this month, the NZRPA in a letter to the provincial unions said "the professional players do not want to see a divided and further complicated governance system but will not under any circumstances be governed under Proposal 2 or the status quo."
The statement also said the adoption of Proposal 2 would result in the NZRPA being forced to establish a new governance arrangement for professional rugby in New Zealand.
It outlined a split between the professional game and the community game.
"'The Professional Rugby Tribunal', will govern, in some sort of partnership with NZRU, the sale of media rights, the contracting of sponsors, the revenue share model, international and national competitions, the high-performance programmes and development pathways and any other activity that impacts the careers, safety, remuneration, workplace and development of professional players," the letter signed by a group of leading players and former All Blacks captains David Kirk and Richie McCaw.
"NZRU will continue to govern alone the community and amateur game including provincial rugby, club rugby and other non-professional rugby activities," the letter went on to say.
NZRPA boss Rob Nichol said they would now forge ahead with the plan for a new body.
"We would be one component to the group," he told RNZ's Morning Report programme today.
"We need expertise and focus on the professional game but what we are not prepared to do is to allow New Zealand Rugby to go off and do that themselves.
"We are not going to trust their governance structures to deliver what we need."
Nichol said they will still be contracted with New Zealand Rugby to drive the professional game.
"We want the tribunal focused on the professional game with the expertise required to govern the game in a way that keeps it successful. We have to do that with them, we can't do that separately."