The southern hemisphere's provincial competition expands from 14 teams to 15 in 2011. Australia is competing with South Africa and New Zealand for the right to host the new franchise.
The ARU said it wants to maximise its chances by nominating a single bid and agreed that Melbourne – which put forward three different expressions of interest - presented the best chance of winning.
"At this stage in the evolution of Super rugby, we believe Melbourne has the best chance of success," ARU boss John O'Neill said in a statement today. "We are in a three-nation race for the licence and we want the 15th team in Australia. So we need to focus our energy on what will be our most compelling bid."
"There are elements in each of the Melbourne expression of interests that ensure the sum of the parts will be extremely powerful. We intend to align these components in a sensible format of ownership."
The deadline for formal bids to be sent to SANZAR (the body representing the rugby unions of South Africa, New Zealand Australia) is in September with a final decision on the new team expected in October.
