Last updated 21:15, May 15 2018
Wellington Phoenix chairman Rob Morrison met with the FFA and Gino Marra, the head of the South West Sydney FC, but a partnership now looks unlikely.
A Sydney-based consortium will proceed with its plans to bring an A-League team to the city's south west despite the likely decision of Football Federation Australia to block its proposed A$15 million (NZ$16.3m) purchase of Wellington Phoenix's licence.
The FFA looks set to reject the transfer of the Phoenix's licence on the grounds of maintaining the integrity of its current expansion process, despite Wellington reaching an agreement for its sale and relocation to Sydney.
Wellington Phoenix's licence is up in two years' time and it is unlikely to be extended unless there is a drastic uplift in the club's off-field performances. The proposed terms of the sale to the Sydney consortium would have seen Wellington Phoenix close its doors and the A-League effectively end its partnership with New Zealand football.
The future of the Wellington Phoenix remains under a cloud as the owners explore 'external investors who could bring capital and players to the club'.
It's understood the proposal included a 100 per cent transfer of Wellington's ownership over a two-year period to the South West Sydney Football Club bid, leading to a new team playing out of Campbelltown Stadium in the short term. Despite earlier reports, it was unlikely the proposed sale would include the new team playing home games in the New Zealand capital and Sydney.
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The FFA is understood to have informed both parties it will not allow the sale to go through while other entities are bidding for expansion to a 12-team competition. The FFA is set to formally reject the proposal in the coming days.
Last week the Phoenix said they were in discussions with potential club partners but reaffirmed their A-League licence was not for sale.
FFA chief executive David Gallop confirmed he held a meeting on Friday with Phoenix chairman Rob Morrison and Gino Marra, the head of the South West Sydney FC expansion bid.
"The owners have consistently maintained that they are open to external investors who could bring capital and players to the club as well as providing professional development pathways for the players from New Zealand," the club's statement read.
"Although there are currently potential options that are worth exploring ... the Phoenix will not conduct any of those discussions via the media."
The looming rejection of the sale, however, has not deterred South West Sydney FC going ahead with its bid for an A-League licence after submitting a proposal to fund and build a stadium near Badgery's Creek airport.
The group, which is comprised of several local clubs and associations, has approached Liverpool Council with a view to constructing a 15,000-seater stadium in the surrounding precinct of the new airport, having gained funding approval from its private backers. The proposal is for a single-tiered rectangular arena with full roof covering for all seats.
The bid is one of three from Sydney that has already been made public as part of the current expansion process, alongside a separate bid from Campbelltown City Council for a team in the growing south-west corridor as well as Southern Expansion, based in Sydney's southern suburbs and Wollongong.