The SRU are believed to be in negotiations with insurance company Chubb and at least one other party over a sponsorship arrangement that would help get the deal across the line, but with only two months until the opening round of the premier grade club competition, time is running out.

SRU president David Begg said he remained "very hopeful" that a deal could be done.

"We've had a strong response from potential corporate partners and we remain very hopeful that the Intrust Shute Shield will remain on free-to-air television in 2017," Begg said. "We hope to be able to make some announcements shortly."

The deal, in its third of five years, has attracted controversy for its terms, which require the SRU to make a $250,000 advertising spend with broadcaster Channel 7 in exchange for the live broadcast of one game per round on 7Two. Last year the Australian Rugby Union came up with the money at the last minute, but this year neither the ARU nor NSW Rugby Union is prepared to come to the rescue.

Outside the Channel Ten broadcast of the Wallabies' Rugby Championship Test matches, the Shute Shield deal is Australian rugby's only presence on free-to-air television, with Super Rugby broadcast on pay television operator Fox Sports.

Begg, who inherited the deal when he took over the SRU presidency last year, said he was committed to honouring the contract and keeping the competition on television.

"It's not a hard competition to sell," he said. "The strong community focus and some recent good news on junior rugby registrations means there is a real sense of an upswing in rugby across Sydney."