The former England flanker Michael Lipman is considering retiring from the game having just completed a nine-month ban for refusing to take a drugs test, because the Australian Rugby Union has declined him a licence to play for Melbourne Rebels in next year's Super 15.

The 30-year-old, who left Bath last May after a club inquiry into allegations made after a squad day out in London, was born and brought up in Australia but needs a licence to play in the Super 15. He is regarded as an overseas player as he is not eligible to play for the Wallabies having won 10 England caps.

The Rebels are allowed to sign up to 10 overseas players, but they all need to be cleared by the ARU. Danny Cipriani agreed a contract last month, while the Wales and Gloucester No8 Gareth Delve, a former colleague of Lipman's at Bath, is considering an offer. Lipman agreed terms but was not regarded by the Union as what it termed "a cleanskin".

"I would like to speak to leading ARU officials about this," said Lipman. "It's my life, my career. Giving up the game has crossed my mind."

The Rebels are angry that the former Bath second-row Justin Harrison, who received a six-month ban after admitting taking cocaine during the Bath players' outing in London, was cleared to play for the Brumbies.

"Michael Lipman is foreign and, as such, needs to meet a range of criteria and, at this point in time, he does not," said an ARU spokesman. "If we are bringing in overseas players into our game, they need to be cleanskins."

The Rebels will not be contesting the decision. "We are bitterly disappointed by it, but as far as we are concerned that is the end of the matter," said the franchise's chief executive, Brian Waldron.

Meanwhile, the Wales and Lions scrum-half Mike Phillips, who had been attracting the attention of clubs in France, has signed a new contract with the Ospreys that will keep him at the Liberty Stadium until 2014.