The announcement comes after RugbyWA’s appeal was quashed today in the NSW Supreme Court.

The decision permits the ARU to axe the Western Force from Super Rugby.

Forrest plans to set up a new six-team rugby competition with a Perth-based team to participate.

"It's not a great day for the ARU but it is a great day for Australian rugby," Forrest said.

"We're not giving up, even remotely.

"Out of great disappointment there comes great opportunity."

RugbyWA said the decision to axe the Force had caused significant damage to the game.

"The ARU had formed the view in February this year that the Western Force were the only team that could legally be removed from the competition," RugbyWA said.

"For the ARU to suggest there was an objective and transparent process, evaluating the merits of both the Western Force and Melbourne Rebels, was misleading and disrespectful to both RugbyWA and the Victorian Rugby Union.

"This has caused significant damage to both the game and the Super Rugby competition and reflects poorly on the ARU's own values of honesty and integrity."