Former All Black Zinzan Brooke has accused Australia of "stealing" the 2003 World Cup and has urged New Zealand to respond by threatening to pull out of the tournament.
The IRB confirmed today that Australia would host the 2003 World Cup on their own after New Zealand officials last month refused to sign the sub-host agreement.
"This is a real shock for New Zealand, a big blow," Brooke told the BBC. "It's a kick in the teeth and I would like to see the All Blacks respond by threatening to pull out of the tournament.
"It's a complete disaster and the outcome is totally unacceptable. Regardless of the arguments for and against, it's the wrong decision, though I'm sure the Australians will be celebrating."
Brooke also said in his column on the BBC website that Australia had manipulated the situation in revenge for New Zealand's decision to block the expansion of the Super 12 series.
"The IRB's decision to award sole rights to stage the 2003 Rugby World Cup to Australia is a disgrace," he said. "The New Zealand Rugby Football Union has let the country down badly, but don't for one minute think the Australians are innocent, because they are not."
"It's been their intention for a while to steal the entire tournament - ever since New Zealand rejected plans to expand the Super 12 ... that's what this is all about and don't let anyone tell you otherwise. We hurt Australia and now they're getting their revenge. It's all very petty."
New Zealand vetoed plans in February for the Super 12 to be increased to 14 sides, with Australia and South Africa each gaining an extra team in the regional competition. Brooke also wrote that New Zealand should withdraw from the Bledisloe Cup, the annual competition between the trans-Tasman Sea rivals which has now been incorporated into the Tri-Nations championship.
"There is no way that New Zealand should play the Bledisloe Cup games - they should just let the Aussies hang onto the Cup if that's what they want.
"Clearly it became a priority for Australia to go it alone [with the World Cup] - once New Zealand had highlighted its concerns. They don't see to have done a great deal to iron out problems - they've been more than happy to fan the flames."
Brooke also warned the Wallabies to expect a tough encounter the next time the two sides meet. "Australia are using the World Cup as a way of getting back at New Zealand - it's as simple as that," said the former back row forward.
"It's pathetic, but the All Blacks will mop all this up as motivation. I can't wait for the next time the teams play each other. The Aussies are just going to have to watch out, that's for sure."
New Zealand and Australia's next planned meeting will be on July 13 in Christchurch in the opening game of the Tri Nations, which also features South Africa.