A 'hybrid option', similar to the current set-up but containing the proposed 'Super Eight' stage.
The RFU also hopes to move the tournament forward, from its current October timeslot to June, in an attempt to make the competition more successful commercially.
France, the only other bidding nation, has already announced its intention to hold an identical format to that which exists already.
Sole hosts
The RFU's bid to become sole hosts in four years' time will include matches played at 16 top-flight stadia around the country.
These will include Manchester's Commonwealth Games stadium, Old Trafford, Bolton's Reebok Stadium and Southampton's St Mary's Stadium.
Traditional rugby hotbeds will also be utilised, such as Welford Road, Franklin's Gardens and Kingsholm.
"Our aim is to be sole hosts of the event," said Baron.
"A solo approach clarifies responsibility, accountability and ensures smoother management and logistics, as South Africa proved so effectively in 1995."
The RFU's preferred proposal will be considered by the IRB Council with a final decision expected soon.
"Through excellent forward planning, we aim to make the Rugby World Cup 2007 the most widely experienced, viewed, read about and listened to rugby event ever.
"And we will put in place a creative marketing programme to ensure the best commercial return for our partners. This is a strong bid," said Baron.
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To win, the championship nation will have to have played five of the top eight teams
