England’s governing Rugby Football Union (RFU) and the country’s top-flight Premiership clubs have agreed a STG13 million ($A23.73 million) compensation deal covering next year’s World Cup, it was announced Friday.

Clubs have also been cleared to play matches during the knockout stages of the tournament, which will take place in England from September 18 to October 31 next year.

Premiership Rugby, the umbrella group which represents England’s 12 leading clubs, had been looking for a reported STG14 million package in return for shutting down the league in September and October.

International Rugby Board regulations normally require no elite club rugby is staged during a World Cup tournament.

But Premiership clubs, who stood to lose STG1.2m ($A2.19m) each in the event of a shutdown, were unhappy at the expectation they will suspend the competition come what may even though they were not consulted about the original World Cup bid.

However, a STG13 million agreement between the RFU and Premiership Rugby has now been reached, with the IRB relaxing its rule on no other top-flight rugby in time for the knockout phase of the World Cup, which starts on October 17, 2015.

“It’s a reflection of the strength of the partnership that once again we have managed to come to an arrangement that benefits both the RFU and clubs,” RFU chief executive Ian Ritchie said.

“By the very nature of the deal, the more successful the RFU is, the more the clubs benefit, while it is good that Premiership Rugby continue to use Twickenham to develop their competition.

“It is also significant that there is an incentive to conclude negotiations swiftly around a new long-term ‘heads of agreement’ that has proved so successful to date.”

IRB and Rugby World Cup chairman Bernard Lapasset added: “Rugby World Cup is about celebrating Rugby and with all parties committed to ensuring that England 2015 has rugby and fans at heart, this announcement is good for international and domestic rugby and will further Rugby World Cup 2015 as a celebration for all rugby fans.”

As part of the agreement, England coach Stuart Lancaster will name his next elite player squad on October 22.

The delay in selecting the squad — moved from its original slot in August — means Lancaster can pick players who are in form for November’s home internationals against world champions New Zealand, South Africa, Samoa and Australia.