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Australia has decided not compete with England for the right to host the 2015 Rugby World Cup.
Australian Rugby Union chief executive John O'Neill said Europe was the logical next destination after New Zealand host the tournament in 2011.
"We won't bid for 2015," said O'Neill, the driving force behind Australia's successful staging of the 2003 event.
England's 2015 World Cup bid rivals include Japan, Italy and South Africa, plus Wales, Scotland and Ireland.
O'Neill said: "I think it's impossible for New Zealand to produce the same financial result that [2007 hosts] France did.
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"So it's not too difficult to conclude that the World Cup has to go back to the northern hemisphere in 2015."
The International Rugby Board (IRB) will vote on the hosts for both the 2015 and 2019 World Cups on 28 July.
O'Neill added Australia would back Japan's bid for 2019 if they decided against running themselves.
"Japan will have our support. They're bidding for both World Cups but I tend to think their best chance is 2019," he said.
The ARU is currently debating whether it can commit to hosting the 2019 tournament because of the financial guarantees demanded by the IRB.
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