Australian Rugby has turned down a Kiwi demand of financial compensation for the services of Crusaders flanker Pete Samu.
In an outcome which rules Samu out of making his Test debut for the Wallabies against Ireland this month, New Zealand Rugby confirmed its stipulations hadn't been met.
While neither national union has publicly said what the deal entailed, it is widely believed NZR required cash compensation before it would grant the 26-year-old a release from his Crusaders contract.
In a written statement, NZR head of professional rugby Chris Lendrum confirmed trans-Tasman bosses hadn't come to terms.
"We have attempted to resolve this matter in good faith but our proposals have not been accepted," Lendrum said.
"New Zealand Rugby remains open to resolving the issues."
RA hasn't commented although Wallabies coach Michael Cheika has expressed bewilderment money was stopping Samu playing for his country of birth.
"I was a bit surprised to find out that there's a compensation issue around this," Cheika told Macquarie Sports Radio on Friday.
"I thought the rule that's been around, about players getting to play in a national week are preserved.
"The kid's very keen to play for Australia. I feel a bit for him too, it's a national call up, first time."
Cheika was forced to omit the explosive flanker from his midweek squad announcement but he had left a space for an extra loose forward to be added.
NZR says it is entitled to block Samu's release because while Samu is eligible for two countries, his contract commits him to New Zealand.
NZR recently granted a release for flanker Brad Shields to represent England against South Africa next month.
Veteran Hurricanes skipper Shields was shown leniency because of his long service in New Zealand.
Crusaders chief executive Hamish Riach and coach Scott Robertson have both said they would support Samu wearing a Wallabies jumper.
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