The Super 12 is to remain just that.

The Board of SANZAR, meeting in London, rejected the idea of expanding the competition to 14 because of certain pre-conditions set by New Zealand.

The decision is likely to anger Australia, the holders of the World Cup and Super 12 trophies who have been pushing hard for the competition to be expanded in 2003.

New Zealand have five teams, South Africa four and Australia three, but South Africa and Australia both wanted one extra.

The ruling comes one week before the 2002 competition kicks off.

A furious Australian Rugby Union chief executive John O'Neil said New Zealand had "stuffed Australia and South Africa".

It could even lead to Australia and South Africa freezing out New Zealand from future tournaments.

"We feel extremely bitter," O'Neill said today.

"We feel there was genuine treachery but we will not forget what's been done to us."

Australia and South Africa both wanted to field an extra team in a Super 14 competition next year and New Zealand originally supported the proposal at a SANZAR meeting last July.

However, the NZRFU said in December that three conditions would have to be met before it guaranteed its support.

Australia and South Africa claimed the conditions were unreasonable and the NZRFU refused to budge on its position at a SANZAR meeting in London driving a wedge between the Southern Hemisphere powers.

The NZRFU could live to regret its actions through when the contract for the Super 12 is re-negotiated with News Limited in 2005.

New Zealand was now at risk of being shut out by Australia and South Africa in future negotiations, threatening the survival of the Tri Nations and Super 12 tournaments in their current form.

The NZRFU had said it would agree to Australia and South Africa having extra teams if the SANZAR contract with News Limited reduced the obligation each country had of staging five home Tests each year to four.

The New Zealand body also wanted the contract immediately extended by 10 years and Australia and South Africa to provide details of revenue sharing post-2006 this year.

"They have effectively blocked the development of Australian rugby and they probably feel very, very happy with themselves," O'Neil said.

"South Africa is devastated. They're in exactly the same position as us."

The ARU was desperate to have a fourth provincial team to help develop the depth of Australian rugby and stop the exodus to Europe of players who missed contracts with the ACT, NSW or Queensland.