New Zealand will reprise the five-team domestic Super Rugby Aotearoa competition in 2021, with no Australian or Pacific islands teams involved.
The Super Rugby AU competition is also set to proceed as per 2020, with cross-over matches between with teams from both competitions at the end of both seasons.
"COVID has forced us to think domestically for next year," New Zealand Rugby chairman Brent Impey said.
"Given the success of Super Rugby Aotearoa, it became a no-brainer that we do something similar in 2021."
Impey said their competition would expand in 2022, with four preferred teams short-listed and a decision would be announced by the NZR board on November 30.
He said those teams would remain confidential until then, although the board had committed to a minimum of three new entries.
Western Force, who made their return to Super Rugby AU this year after their billionaire owner Andrew Forrest set up his own Global Rapid Rugby competition, has been linked to the New Zealand competition.
Impey wouldn't reveal if they were one of the short-listed teams.
"We have had positive dialogue with Global Rapid Rugby and that continues and they've been very open with what their ambitions are and we have ongoing dialogue with them."
He said given the financial pressure on NZ Rugby, the teams joining in 2021 needed to be self-sufficient.
"They must be competitive on the field and self-sustaining off.
"NZR is heading towards a multi-million loss and we cannot afford to be subsidising any new teams who come in."