The Wellington Phoenix's future in the A-League looks dire after a Football Federation Australia annoucement this afternoon.
Football Federation Australia has rejected the Phoenix's application for a 10-year licence extension, and will now only accept an application for a four year extension.
FFA CEO David Gallop said the Board decision was taken in the best interests of Australian football.
"FFA has carefully evaluated the role and contribution of the Wellington franchise in terms of game development, player pathway, commercial factors, broadcast rights and the long-term strategic outlook," said Gallop.
"The application for a 10-year extension to the licence does not meet the requirements we see as fundamental to the future growth of the Hyundai A-League."
An FFA board meeting was held on Monday to make the decision, one which is crucial for the Phoenix's future - with their licence expiring at the end of this season. Reports out of Australia have also suggested that the Phoenix could be replaced at the end of the season by a third team from Sydney.
The Wellington Phoenix will not comment on the situation only saying in a statement that the board and Welnix ownership group will consider the situation in due course.
It has been reported that the Phoenix ownership group - Welnix - will be unlikely to be interested in accepting the four-year extension, with the consortium having little desire in investing money for the short period of time. They showed little interest in accepting the previously offered five year licence, and wanted 10 years to set up a long-term sustainable model with stability.