London Welsh have given a strong indication that they will not play in Oxford next season for money reasons.

The Exiles chairman Bleddyn Phillips says Kassam Stadium rents make it “financially imprudent” for the club to remain in the city for 2013-14.

Welsh, who also confirmed that chief excecutive Tony Copsey has resigned, were relegated from the Aviva Premiership after losing 31-14 to Northampton on Sunday.

Phillips has not said whether Welsh will continue to play in Oxford as a Championship club.

But his statement makes it seem more likely that they will return to Old Deer Park, Richmond.

He said: “We are not now oblig-ated to stay at the Kassam and certainly the present rental charges would be prohibitive and render it financially imprudent to continue there.

“All that can be said for the moment is that we are considering all options and will come to as early a decision as possible having taken soundings from all our stakeholders.”

Phillips’s statement comes after Welsh’s principal shareholder and benefactor, Kelvin Bryon, announced that he would be withdrawing his backing of the club at the end of the campaign.

The Exiles chairman spoke of Bryon’s “very generous and critically important funding of the club”, indicating the financial gap he will leave behind him.

Phillips added: “Despite heavy investment by certain other people, serious and sustained efforts to identify further major potential investors have proved unsuccessful thus far as have attempts to try and attain a more equitable means of central funding.

“We will of course continue our efforts on the above matters and this is certainly one factor which will have a bearing on where we may base ourselves for next season.”

Copsey said: “I’m obviously very disappointed to be stepping down as the CEO of London Welsh, but given the situation I did not feel carrying on in my current capacity was the best for me or the club.

“I will continue to support the club going forward and wish it all the best in the very challenging times it faces ahead.”