Leeds Carnegie have announced their intention to change the club's name to Yorkshire Carnegie from next season.
The Championship side will continue to play their matches at Headingley but will be run by a new board.
Chairman Sir Ian McGeechan said: "The player pool within the county is as strong as ever with the fantastic work being done at junior and school levels.
"We now face a crossroads if we are able to create a sustainable future for the professional side of the game."
He added: "The only way we can fulfil our vision is to bring together all interested parties and create a new board to enable Yorkshire Carnegie to have the resources to compete with the very best."
Leeds were relegated from the Premiership at the end of the 2010-11 season and lost out to Newcastle in last season's play-offs.
James Lowes' side are currently second in the table, two points behind leaders London Welsh.
Leeds rugby chief executive Gary Hetherington said: "The business model for professional rugby union has changed dramatically over the last decade and now we must forge a new way to give Yorkshire the chance to succeed.
"Rather than relying on the generosity of a handful of benefactors we now want to create a group to control the Yorkshire franchise and allow the club to challenge the best in England and Europe."