Ms Meehan said the panel had considered how the offer fitted with Auckland Plan objectives for the city centre and waterfront. She said the city's public art development needed to have a "strategic, integrated and coherent" approach.
Yang said he was very disappointed with the decision, and intended to appeal against it through the council's ethnic advisory panel.
"At the moment, there is no public structure to mark the All Blacks' World Cup victory and this statue aims to be that."
Yang's other sculpting works are being displayed in China's Shenyang Centre business district and Singapore's Universal Studio Transformer theme ride.
"I think the public art team has got it wrong because I believe the statue will be a huge tourist attraction, and will be a new landmark for the city."