The Australian Rugby Union this week announced a major change in its contracting policy regards the Test eligibility of players based overseas. In what has been labelled the "Giteau clause", any player with a minimum of 60 caps and seven years' service to Australian rugby is now free to represent the Wallabies, irrespective of where they are playing.

The overhaul has been described as "reactionary" in some quarters due to Australia's slide to No.6 on the Test rankings, while others believe the timing is simply a recognition the Wallabies can't overlook Matt Giteau's irresistible claims for Rugby World Cup selection. The Toulon star is the reigning European Player of the Year and will be a central figure as the French giants attempt to defend both their Heineken Rugby Champions Cup and Top 14 crowns in the coming weeks.

RUPA chief executive Ross Xenos © Rugby Union Players Association

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But the Rugby Union Players Association (RUPA), a 29% shareholder in Australian rugby, has hailed the ARU decision and its "acceptance of the international rugby market for players". Speaking exclusively to ESPN on Thursday, RUPA chief executive Ross Xenos revealed the extent to which his organisation had been involved and pointed to the fact that the "privilege" of playing for the Wallabies had, importantly, been preserved.

"Obviously it is an historic day," Xenos told ESPN. "I know that some of those in the media are calling it the biggest backflip in policy in the history of professional rugby; I don't know whether I'd go as far to say that but I'd certainly say that's it's a very significant moment in Australian rugby contracting. RUPA has for some time been trying to advocate for a more flexible approach in the way the game approaches the entire contracting framework and I guess that's what most pleasing about this outcome is that the ARU have introduced that flexibility in a way that still retains a lot of credibility in the process, and obviously the privilege, of playing for the Wallabies.

"And I think that will ensure the system is sustainable and doesn't eat away at the values that rugby has been able to establish over the years. So, credit has to go to the ARU board, to [chief executive] Bill Pulver and [Wallabies coach] Michael Cheika, in being prepared to take that next step but then implementing it in a way that will hopefully see it balance out the other objectives that the game has."

Wednesday's announcement came as a major surprise due to the ARU's previously staunch stance against moves to loosen the eligibility restrictions for overseas-based Wallabies players. Xenos said his organisation had been chipping away for around 18 months and persistence eventually paid off after early talks weren't looking promising.

"We've been engaged in ongoing dialogue for the better part of 18 months on the issue of having more flexibility in contracting and selecting the best Wallaby team that is tapping into those players playing overseas, that was one of the issues on the table," he told ESPN. "We're aware that, initially, as part of that conversation, the ARU wasn't necessarily willing to be overly flexible to change its rules to the extent that is has; but obviously the consideration that the ARU board has given this issue and led by the opinions and policies that have been drafted by their senior management have obviously led us to this outcome.

"We haven't necessarily had specific discussions over the course of the last week whereby we've had to approve any of this; let's be clear, the selection policy and the eligibility criteria for players to be Wallabies is purely an ARU issue. So it's their policy to amend as they see fit but, obviously, like all things, we share our views and our opinions with them on that and we are very appreciative of the consultation which they provide to us on all issues."

Massive news re. @QantasWallabies policy change..The ultimate honour to represent your country however form still must warrant selection

— Matt Giteau (@giteau_rugby) April 22, 2015

@JonnyWilkinson @drew_mitchell @QantasWallabies @giteau_rugby The new ARU selection criteria means that I am eligible also! Off to train.

— Michael Lynagh (@LynaghMichael) April 23, 2015

While the availability of Giteau, Drew Mitchell and George Smith for this year's World Cup is an immediate positive outcome, the change in protocol is also recognition of the modern-day marketplace for international rugby players. Australia will lose the likes of Will Genia, Adam Ashley-Cooper, Sekope Kepu and James Horwill after the World Cup, while others like Quade Cooper could soon follow.

The ARU's amendment will secure the services of most if not all of those players - providing they're required of course - with Pulver confirming the governing body would begin to exercise World Rugby Regulation 9 that forces clubs to release players for Test duty during certain international windows. The ARU also hopes the policy change will make Australian players less tempting on the open market as clubs will no longer have guaranteed access all season round. But Xenos isn't so sure.

"I know there's been some speculation over the course of the last 24 hours that the ARU giving notice to all overseas clubs that it's now willing to enact World Rugby Regulation 9 and that may make our players less attractive to those clubs," he said. "I think it's well and truly far too early to speculate on that. I think that there may be some players for whom the overseas clubs are viewing as potentially 50/50 propositions whereby this [policy change] becomes an influencing factor. However I wouldn't think that this would ultimately change the entirety of the landscape because overseas clubs are always going to want the best players available to them and typically those players are the ones representing their national teams."

Taqele Naiyaravoro made his Super Rugby debut only in 2014 but already he is drawing attention from European clubs © Getty Images

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The hole in the ARU's grand plan looks to be at the younger end of the scale - Australia's generation next. The policy sets out to reward a player's longevity and service to Australian rugby, but European clubs have already shown a willingness to roll the dice on the less experienced - or players who are just starting, or are on the verge of, a Test career.

Xenos conceded the policy's "potential losers" were the game's emerging stars, but he also suggested the desire to live overseas and experience another culture would, for some players, outweigh long and proud Wallabies careers.

"Look I think we're already starting to see that, the attention that someone like Taqele Naiyaravoro is getting in overseas markets; that their [foreign clubs'] interest is not just in those players that are proven at international level," he said. "The data that we have on file, that we've compiled from various surveys of current and past players, shows that players are departing for overseas younger than what they ever have. And obviously the level of remuneration they can get from those competitions is one component of that; but we're also seeing that players are genuinely interested in experiencing a different lifestyle and a different culture and that rugby as a game is able to offer those opportunities, and that's very attractive for players."

The potential ace up the ARU's sleeve is its "flexible contracting" option that saw Bernard Foley commit to a new three-year deal with the provision that he be granted two seasons in the Japanese Top League. That avenue looms as the best, and probably only, way to keep superstar Israel Folau in Australian rugby; but it's likely to be an option afforded to only the very elite with Pulver telling a sports editors conference on Tuesday that "probably only a handful" of players would be considered for the revolutionary deal.

Still, in combination with the overseas-eligibility change, the "flexible contract" option has certainly provided a much brighter outlook for the Wallabies and the general health of Australian rugby.

"I think what's crucial is that having this adjustment to Wallaby eligibility is one component of that; but having the flexible contracting to apply to those players who are yet to reach 60 caps and have seven years of service, I think is an equally crucial tool to be able to ensure Australian rugby is able to retain and recruit its elite, and younger emerging talent, into the future," Xenos told ESPN.

"So I wouldn't think that this latest policy will have a substantial influence over the flexible contracting policy itself, and I think that both policies working in tandem show that the ARU is now very open to considering ways to work with the international rugby player marketplace, rather than trying to fight against it."