  A gauge invariant regularisation for dealing with pure Yang-Mills theories
within the exact renormalization group approach is proposed. It is based on the
regularisation via covariant higher derivatives and includes auxiliary
Pauli-Villars fields which amounts to a spontaneously broken SU(N|N)
super-gauge theory. We demonstrate perturbatively that the extended theory is
ultra-violet finite in four dimensions and argue that it has a sensible limit
when the regularization cutoff is removed.
