Scarlets head coach Dwayne Peel has confirmed the club are in a position to offer new contracts but admitted some high-profile players will leave.
Welsh rugby is in the midst of a financial crisis with a contractual freeze having been in place since last summer.
A significant percentage of the Scarlets squad are out of contract at the end of the season, and with an agreement between the four regions and the Welsh Rugby Union nearing completion Peel insists the West Walians have begun offering players new deals.
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But with wages being driven down he thinks there will be players leaving.
"There are going to be players who are high profile who leave and I think that is the reality," said the former Wales scrum-half.
"Verbally over the last couple of weeks we've been having those discussions, offering firm contracts.
"We are in the process of doing that.
"It's something that's been ongoing over a couple of weeks in terms of having those discussions verbally to start so we are in a position now where we can move on with that really.
"Some contracts have gone out but there's a few to negotiate within that as well.
"We need to get a few guys who we want to keep across the line and want to recruit so those are ongoing.
"In terms of planning for next season that's been ongoing for quite some time now really."
With squad budgets in Wales eventually going down to £4.5million there are serious concerns the regions will become whipping boys in the United Rugby Championship.
When one considers Leinster spend in the region of €9-10million on their squads it is very difficult to see the likes of the Scarlets competing, especially considering there is no salary cap in the URC.
Peel, who has previously coached in Ireland with Ulster, admits it will be difficult to compete and insists it is vitally important Welsh rugby doesn't neglect its development pathway.
"That's obviously a big challenge for us, there's no doubt about that," said Peel when asked whether the Scarlets would be able to compete with the wealthier sides in the URC.
"I think the reality around that is if sides have got double the budget of you then it is difficult but what is important is we have depth we need in the right areas, and you aren't overspending on players.
"The big thing for me is there has to be investment in the academy game, and participation.
"We need to bring the young players through to make sure we have got a sustainable influx into our squad.
"You look at what's happening in New Zealand at the minute.
"A lot of their players are signed up to going to Japan after the World Cup, and they are bringing through new players now.
"We have to have that mentality. That's the big thing for me is that the money is invested in the young guys to make sure we have got good players coming through."
Peel confirmed the Scarlets will trim their squad down to between 38-40 players next season.
The 2005 British & Irish Lions number nine confirmed the club would put their faith in youth next season but are likely to recruit a handful of players, although influential No 8 Sione Kalamafoni, who has signed for Vannes, will not be replaced.
"We have to plan for that and make sure we are bringing through the young talent to make sure we are giving ourselves the best opportunities, and we've got to make sure the depth is right in the right areas," he said.
"I'm comfortable with Josh (Macleod), and Caz (Carwyn Tuipulotu) while we also saw Ben Williams against Edinburgh.
"I think they are three players who could fill that void. I'm comfortable with those three as things stand.
"We are not planning to bring someone external in to replace Sione specifically is the truth.
"There are areas we are looking to recruit from the outside but not that position.
"There's a couple of areas where I think we need a bit of depth. We will look at those areas especially in the forward pack.
"In terms of backs we've got a good group of backs.
"There are obviously areas we want to strengthen in over the next couple of seasons with our backline but as it stands we won't put too much focus on our backs for next season."
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