Former All Blacks lock Vaea Fifita has been forced out of English premiership club Wasps just one season into a three-year contract as the financial realities of Covid-19 begin to sting.

Fifita joined Wasps last summer as their star signing but has fallen victim to the Premiership's salary cap reduction, with the cap dropping from £6.4 million ($12.8 million) to £5m in response to the financial carnage caused by Covid-19, with an exemption for one marquee player.

As a result, the Daily Telegraph UK reports the Coventry-based team have had to offload Fifita, who has instead joined Welsh club Scarlets in the United Rugby Championship.

The Telegraph reported former All Blacks midfield Malakai Fekitoa was also expected to leave Wasps for the same reason.

Fifita made his debut for the All Blacks in 2017 but could not find consistent form in the No 6 jersey and didn't make the 2019 Rugby World Cup squad, opting to continue his career offshore.

With clubs in the UK hit by the impact of Covid-19 and having to adjust their salary caps, it may assist New Zealand Rugby as they try to keep top talent on home soil in the next few years.

While cashed-up clubs in Japan have emerged as the destination of choice for many Kiwi players, they often return to New Zealand after a spell in Japanese rugby.