The Anglican Communion's chances of avoiding a fully blown schism took another dramatic setback Thursday when a leading conservative archbishop approved plans to implement breakaway dioceses in the US.

The bitter feud engulfing the worldwide Anglican Church is centred on a disagreement between traditional followers that stand by a core Biblical teaching that homosexuality is a sin, and liberal believers who wish to compromise on the traditional stance to the issue.

Reports emerging late on Thursday suggested that Archbishop Gregory Venables has approved a move to allow conservative dioceses that are defecting from the pro-gay American branch of Anglicanism to affiliate with his South American province thousands of miles away.

The spiritual head of the 77-million member worldwide Anglican Communion, Archbishop of Canterbury, Dr Rowan Williams, is sure to come under huge pressure now from both sides. One demanding he stand up against the continued compromising steps the liberal American Church has been taking, and the other calling for him to denounce the latest development as an illegal 'parallel province'.

The majority of worldwide Anglicans are found in the Global South, which consists of a huge majority supporting the traditional teachings of the Church - making the situation a tough predicament for Dr Williams to find himself in.

He is already facing threats of a conservative boycott of 2008 landmark Lambeth Conference in England if he again fails to adequately discipline the liberal US Episcopal Church over their pro-gay policies.

The problems run even deeper though, as despite numerous requests and assurances for the liberal church to refrain from pushing forward with its pro-gay agenda, even this weekend the Diocese of Chicago will vote whether or not to elect a lesbian cathedral dean to be its next bishop.

The root of the split finds it most recent origins in the 2003 Episcopal consecration of Bishop Gene Robinson, the Anglican Communion's first-ever openly gay bishop - breaking the Church's official policies.

Archbishop Gregory Venables, who is the Primate of the Province of the Southern Cone, has reported to The Telegraph: "This is a pivotal moment in the history of the Anglican Communion. The new realignment demonstrates the depths of the divisions that already exist."

He added, "Conservatives in America and elsewhere cannot wait in limbo any longer. They need a safe haven now."

The plans were overwhelmingly approved by his provincial synod during a meeting in Chile on Thursday evening.

The move follows the actions of a number of conservative American dioceses that are already in the process of opting out of the Episcopal Church by voting in their diocesan synods to alter their constitutions.

Reports suggest that up to five are expected to become part of the Southern Cone, which covers most of South America except Brazil, over the next six months or so.

Until now, only parishes have left the American Episcopal Church and affiliated with overseas provinces in Africa. But now there will be rival dioceses, each claiming to be authentically Anglican, operating in parallel within the same geographical boundaries.

In a letter sent last night, 46 conservative members of the Church of England's General Synod pledged their support to the latest developments to defy the liberal leaders, the Telegraph has said.

It is also thought that a number of traditionalist parishes in Canada will look to affiliate with the Southern Cone province in protest at plans by liberal dioceses to introduce same-sex blessings.