Japanese Prime Minister Shinzo Abe has ordered plans for Tokyo's 2020 Olympic stadium to be ditched amid public anger over its $US2 billion ($A2.7 billion) price tag.
The decision on Friday means the organisers of the 2019 Rugby World Cup will have to find a new venue for the final.
"I have decided we must go back to the drawing board," Abe told reporters after meeting top Japanese sports officials.
"We have looked at the logistics and construction period and I have made this decision because I was assured that we can definitely complete construction on time.
"We must control costs as far as possible," he added.
"We are determined to draw up the best possible plan, and we have to draft that plan as quickly as possible."
Iraqi-British architect Zaha Hadid's futuristic design had been met with fury by many Japanese architects.
What began as a cosmetic row gave way to widespread discontent and public bickering over finances.
Sports Minister Hakubun Shimomura said a new bidding process would be launched.
"We will decide the design in six months," he told reporters.
"From design to completion of construction, 50-plus months is looked at. The aim is to finish it by the spring of 2020."
The International Olympic Committee said it had noted the decision and indicated it would closely follow the new stadium plan to make sure the Olympic deal is kept.
The 2019 Rugby World Cup became an early casualty of the U-turn with organisers forced to find alternative venues in Tokyo or Yokohama for the final and other matches.
"Unfortunately we cannot build the stadium in time for the rugby World Cup," said Abe, whose approval rating has plunged in recent months.
"But the government remains fully committed to supporting the tournament."
AFP
