It comes just four months after Rugby Australia (formerly Australian Rugby Union) announced it would axe the Western Force from next year's Super Rugby competition.

The association will meet with creditors in around a week, with a restructure expected to be made within a month.

"Our view is that voluntary administration is the most prudent course of action for RugbyWA," Howarth told Fairfax Media. "It's become necessary really because we're facing a likely insolvency event with Rugby Australia advising its intention to pursue RugbyWA for significant costs with its successful legal action to remove the Western Force from Super Rugby.

"With support from Andrew Forrest, RugbyWA has tried to settle the matter with Rugby Australia but without success. We just hope through the voluntary administration we can achieve a restructure for RugbyWA in the best interest of creditors and the great sport of rugby in Western Australia."

Rugby Australia confirmed on Friday evening it has been pursuing RugbyWA for legal costs totalling $1.7 million.

"We respect the RugbyWA Board's position but it is important to set the record straight that today's decision by the RugbyWA Board to place the organisation into receivership is not the result of any action by Rugby Australia," said Rugby AU chief executive Bill Pulver. "Our view is that we were still in a negotiation to settle on costs awarded to Rugby Australia by the NSW Supreme Court."

"Our focus is on pursuing the high net-worth individuals that made commitments to RugbyWA to fund their legal battle and we are continuing to seek only a portion of the total costs."

There are fears RugbyWA's debts will force it to retrench staff, including development officers. This could hand the state to rugby league with the NRL aggressively expanding its presence in the state including opening its 2018 season with a double header at the new Perth Stadium.

Howarth said there was still animosity in the west over Rugby Australia's treatment of the Force across the year.

"We're all angry, disappointed and frustrated at the removal of the Western Force and there is a sense that Australian rugby abandoned Western Australia," Howarth said. "Western Australia is resilient and with the support of lots of really good rugby people, we'll come back. We always do.

"Rugby will continue to be strong in Western Australia and there's a huge amount of support here. There's still a lot of anger and a sense of betrayal towards the Australian Rugby Union but that won't take away the love of the game for people and we've got people like Andrew Forrest who are absolutely intent on ensuring rugby survives and grows in Western Australia."

with Heather McNeil