Paddon and Rally NZ boss Peter Johnston lobbied hard for the event over the past year with every indication being a return was likely.
That has made being left out all the more difficult to accept.
"I feel like we've been stabbed in the back and that is how I feel - there have been a lot of others that have poured a lot more work than I have into it," Paddon said.
"It is a difficult pill to swallow."
It is even more frustrating for Paddon who is entering the prime of his career. He knows that the window he has of driving his local roads in the highest level of the sport is fast closing.
"I said if we don't get it now it will probably never come back and I stand by that," the 30-year-old added.
Paddon is back in New Zealand for a three-week break before returning to Europe to prepare for Rally Spain in early October.