China, Italy, Britain and the Netherlands, would vote on the final location, but the leaked report was seen as a major setback to New Zealand and Australia's hope of winning the project, the Sydney Morning Herald reported.
Sergei Gulyaev, head of AUT University's Institute for Radio Astronomy and Space Research, last month said one of the tantalising prospects of the radio telescope would be its ability to give a "bird's-eye view'' of the tectonic plates deep under New Zealand.
The Russian-born scientist said the radio telescope could use "quasars'' - stable points on the edge of the universe - as a frame of reference for measuring the most minute changes on Earth.
"By observing quasars on the border of the universe, we create a fundamental reference frame in which we can study all the irregularities of the rotation of the Earth, ocean, tides, and solid earth, and the way an island like New Zealand is breathing.''
The New Zealand/Australia bid has earmarked locating the bulk of the array in Murchison Shire, a vast outback area in Western Australia north-east of Geraldton, which has no mobile phone towers or other human activity to interfere with the signals.
In New Zealand's South Island around 25 to 50 antenna dishes would contribute to the array, in areas yet to be identified.
It's too early to determine whether dishes would be situated in the North Island.
Construction of the array is set to begin in 2016.