The Waratahs reportedly will not table a Super Rugby offer for code-hopping NRL star Jarryd Hayne.
According to foxsports.com.au, the Waratahs - after much consideration - have decided Hayne doesn't fit in with their direction.
The decision, less than a week after Hayne held a second meeting with Australian Rugby Union boss Bill Pulver, means the former San Francisco 49ers' NFL player and Fijian Olympic sevens aspirant will have to look outside Sydney if he remains intent on playing Super Rugby next season.
Waratahs chief executive Andrew Hore described the decision as a watershed moment in the franchise's history.
"We're not going to pursue Jarryd at this present point in time," Hore told Fox Sports.
"We feel with the fact that we've combined both NSW and Waratahs rugby that our first priority has got to be making NSW a great rugby state again and that's got to be our primary focus.
"Now, is a quick fix going to do that? We don't think it is.
"We think the issues in our game are that broad and deep that we want to focus on resolving those and, when you've already got 10-plus Wallabies plus Israel Folau in our team, we feel that there's enough star-power there at this stage," Hore said.
"We believe we've got to focus more on those others areas of the game: youth development, infrastructure and building the game of rugby union for all shapes and sizes."
"Now, there's no doubt that if there was unlimited resources, that a player like Jarryd Hayne may have been of real benefit.
"But right now, we have a new and exciting young group of players, (and) combined with the needs of our game to put it back on an even keel, talking to Jarryd probably at the moment isn't the right thing for us as a sport," Hore said.