Team New Zealand has officially rejected the Government's offer to keep the America's Cup in NZ.
It comes after the syndicate's boss, Grant Dalton, indicated a deal was highly unlikely - with the exclusive negotiation period between the Government, Auckland Council and Team New Zealand due to expire on Thursday.
Team New Zealand and members of the Royal NZ Yacht Squadron (RNZYS) met in Auckland on Tuesday night. The general feeling stemming from that meeting wasn't positive and Team New Zealand confirmed on Wednesday morning it would now "commence discussions with other nations to look into options regarding hosting AC37 events".
"By all means, the end of the exclusive negotiation period does not eliminate all possibility of the event or an event being hosted in New Zealand," Dalton said.
"If resources enable an event in New Zealand we will remain open to it. But, we must explore other opportunities to ensure we can put up another successful defence.
"No matter where in the world we are, we will always be Team New Zealand."
Phil Goff, Auckland's Mayor, said he shared the disappointment of the America's Cup "looking like it is going overseas".
"Auckland Council and the Government have made a combined offer in cash and in-kind of nearly $100 million but Team New Zealand wanted twice that amount. That clearly was not sustainable in the post-COVID environment."
Dalton added Team New Zealand's priority was to keep and defend the America's Cup.
"We certainly want to explore holding a regatta in Auckland and along with discussing the venue for AC37 with other nations, would like to work through that opportunity also."
Since the successful defence of the Cup earlier this year, the Government has pumped $5 million into Team New Zealand.
RNZYS commodore Aaron Young said it's wise that other options are explored.
"It would be an unprecedented achievement to win the America's Cup three times in a row and taking the cup overseas may well offer the best chance for us to do so."