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Australia has withdrawn its bid for the 2015 World Cup and may not bid for 2019 due to an "exorbitant" guarantee fee charged by the International Rugby Board, the country's rugby union chief said.

Australian Rugby Union (ARU) chief executive John O'Neill said it would be a struggle to find a bank willing to guarantee the £96 million hosting fee amid the global credit crunch and 10 years in advance of the 2019 World Cup.

"We won't bid for 2015," O'Neill said. "We're working on a bid for 2019, but I've got to say the numbers are horrendously difficult to justify with that level of tournament fee.

"As a board, because we're a public company, our directors are saying 'well that's a contingent liability we would have to carry on our balance sheet and a bank isn't going to guarantee it'."

O'Neill said he was sure the IRB was aware the world economic recession was affecting rugby but that made it "even harder to get your head around a £96m tournament guarantee 10 years out".

Australia, along with England, Ireland, Italy, Japan, Scotland, South Africa and Wales, confirmed their intention to bid for the 2015 World Cup last year.

England has since signalled its bid could be in jeopardy because of the difficulty of making the up-front payment amid the global financial crisis although the British government came out in support of the bid in February.

Japanese officials have said the crisis would not affect their bid.

The IRB will make its decision on the host nation for the 2015 and 2019 tournaments on July 28.

Reuters