The Sanzar Executive Committee on Wednesday decided to go to 'arbitration' to decide between Melbourne and the Southern Kings to be the 15th Super Rugby team.
In a statement issued after the meeting, the Sanzar(South Africa, New Zealand and Australia Rugby) officials said that "it was clear that the Executive Committee would not reach the required unanimity".
The Australian Rugby Union expressing its support for Melbourne and the South African Rugby Union stood by their decision to back the Southern Kings.
"As a result no vote was taken by the Executive Committee and it was agreed that the matter should proceed to arbitration in accordance with the Sanzar joint venture agreement," the statement said.
"Sanzar will move quickly to set up an independent arbitration process which will result in a binding decision."
It means Melbourne and Port Elizabeth will have to wait a while longer to learn if either will have a Super 15 franchise.
Under the current system, all parties in the Sanzar triangle would have had to agree unanimously for either team to get the nod for the 2011 season, but with South Africa and Australia in a stand-off, the only option left was the arbitration route.
Reports from Australasia claim the New Zealand Rugby Union support the Melbourne bid, which would give each country an equal five teams in the tournament.
Australia currently have four teams, one less than New Zealand and South Africa.
But the South African delegation of Saru President Oregan Hoskins and acting SA Rugby MD Andy Marinos stuck to their guns, leaving the fate of the Southern Hemisphere's showpiece provincial/state competition in the hands of arbitrators.
There is a strong feeling in the Australasian camp that a South African-based team will complicate matters.
It would result in a lot more travel for the Australians teams in particular, as it has already been decided that the 15th franchise would play in the Australian conference. However, should the Kings win the bid they can be based in Port Elizabeth, but will have to travel to Australia for their away games, while each of the Aussie teams will have to travel to SA at least once for an away game.,
Two potential bids from New Zealand were floated early on in the process, with a bid from Hawke's Bay floundering early in August. Taranaki's Super 15 ambitions ended shortly afterwards when the New Zealand Rugby Union opted not to endorse the region's bid.
The existing Super 14 competition will be re-organised in 2011 along a conference system based in each of the three Sanzar partners.

