The International Rugby Board confirmed in Dublin today that Australia will host next year's rugby world cup by itself.
The decision upholds the controversial move to drop New Zealand as co-hosts earlier this year.
NZRFU chairman Murray McCaw had threatened legal action if his country were not reinstated.
"Throughout its deliberations, the [IRB] Council has been acutely aware of the implications for rugby wherever it is played and remains sensitive to the impact of this decision upon the game in New Zealand, but it was left with no alternative," the IRB statement said.
"Generous accommodations made by RWCL to meet the needs and problems of the NZRFU were repaid with consistent failures and wholly inappropriate behaviour.
"Despite this, the Council determined to give full and fair hearing to New Zealand's position and to its most recent submissions," the statement said.
"However, the outstanding Australian proposal held an attraction, a professionalism and a logic which were irresistible".
PA