The three other options tabled by the WRU include two proposals suggesting a reduction in one side by keeping three teams. These choices are now seriously being considered by the WRU board.
Cardiff are owned by the WRU after the side temporarily went into administration in April.
With WRU chief executive Abi Tierney having already said she can not see a situation where professional rugby would not be played in the Welsh capital, Dragons, Ospreys and Scarlets will be nervously watching what happens.
Reddin says he hopes a consensus could be reached if regions needed to be cut, with mergers an option.
Ospreys chief executive Lance Bradley says he can not imagine any possible merger with west Wales rivals Scarlets – that prospect having previously come close in 2019.
“I credit myself as a rather imaginative person but even I can’t imagine that,” Bradley told BBC Radio Wales Sport.
“I can’t see how it could work. It was proposed a few years ago but there would be so many barriers to it now, that I find it very hard to imagine.”
Bradley says he hopes to have some clarity by the end of October.
“We have been working closely with the WRU but at the end of the day it will be them who has to make the decision,” said Bradley.
“We have had a lot of conversations and they have been constructive.
“We felt that in a meeting we had with Dave Reddin that he genuinely listened to what we said and we hope that will be taken on board.”
BBC News
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