"What clubs should go? I'm not going to get into that one. It's a hard decision but probably one that needs to be made in the longer term interests of the game."
Malone said replacing an existing team was a preferable option to expanding the competition, as having 17 teams and a bye each round would increase costs without generating any "incremental revenue".
NRL chief executive Todd Greenberg reportedly met with Queensland Premier Annastacia Palaszczuk on Friday to discuss a new Brisbane team, while Foxtel chief executive Patrick Delany supported a second team in Brisbane.
However, Delany did not believe in axing an existing club.
"They love their rugby league in Brisbane and it seems a natural fit," he told the Sunday Mail. "You get that intercity rivalry which enhances tribalism and that's ultimately what we want.
"It's all about generating more fans and bigger TV audiences. I don't know if you'd get that real tribal traction with rugby league in Perth that you'd get in Brisbane."