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New Zealand will not submit a formal bid for the 15th Super rugby team when the competition expands in 2011.

The New Zealand Rugby Union had received preliminary interest from the Hawke's Bay Rugby Union, who withdrew from the process earlier this month, and a group in Taranaki.

Both provinces feed into the existing Wellington Hurricanes franchise.

The NZRU, who had been cool on a sixth New Zealand franchise entering the competition, said they would not put the Taranaki bid through to governing body SANZAR (South Africa Australia New Zealand Rugby) for further consideration.

"While consideration was given to referring the Taranaki proposal on to SANZAR, it was agreed that an expansion of the number of Super rugby teams in New Zealand would not be in the best interests of New Zealand rugby at this time," NZRU Chief Executive Steve Tew said in a statement.

"We have consistently questioned whether New Zealand has the capacity, either in playing depth or financial resources, to sustain a sixth Super rugby franchise and that influenced our decision."

The revamped competition in 2011 will see 15 teams split into three conferences. SANZAR has agreed the new team will play in the Australian conference - but does not have to be based in Australia.

Australia has four teams in the current Super 14 competition, compared to New Zealand and South Africa's five, and is considered the favourite for the expansion side despite concerns over its player depth.

None of Australia's teams made the semi-finals this season. The Australia Rugby Union initially received seven expressions of interest for the 15th team, including three from the southern city of Melbourne - an Australian Rules stronghold.

It said last week it would endorse a single bid from Melbourne and urged the three competing bidders to work together to provide the strongest possible package for the 15th team.

South Africa received just one expression of interest from the Southern Kings franchise from the Eastern Cape region. SANZAR is expected to make a final decision in late October.

Reuters