A vote of no confidence in the board has been proposed by about eight of the 27 provincial rugby chairmen - all of whom will meet tomorrow in Wellington.
But the board may decide to resign instead of facing a humiliating vote against them.
New Zealand was due to co-host next year's Rugby World Cup with Australia, but the International Rugby Board (IRB) dropped New Zealand earlier this year after the NZRFU refused to provide venues without pre-booked advertising and seating.
Australia subsequently became the sole host of the Games and preparations are well under way there to ensure that it can stage an extra 23 matches between October 10-November 22, 2003.
A damning report about the World Cup fiasco was recently compiled by Sir Thomas Eichelbaum, New Zealand's former chief justice. He concluded that the NZRFU had acted inappropriately and unprofessionally at a crucial time.
In reaction to the report, NZRFU's chairman Murry McCaw and chief executive David Rutherford both resigned and the provincial chairmen declared war on the union.
