Gasnier is rated the best rugby league centre in the world

The St George-Illawarra centre failed to respond to an ARU deadline over the reported A$700,000 (�290,000) deal.

"Our offer to Mark was both genuine and generous, as was the deadline," said ARU chief executive Gary Flowers.

"For the past month we've had some very constructive discussions, but at all times with mutually agreed deadlines."

The deal would have allowed the 24-year-old, regarded as the best centre in rugby league, to play for New South Wales Waratahs in the Super 14 competition.

Gasnier's manager said the player wanted another week to consider his options after receiving a counter-offer from his current club, St George-Illawarra.

"We had made it clear to Mark that we had commitments and deadlines to honour with other people and we therefore need to move on and progress those discussions," Flowers added.

"We have always said we think Mark would make a big impact in rugby, and felt he would be challenged and motivated by the possibility of playing for the Wallabies on the international stage and potentially playing in a Rugby World Cup.

"We originally had a mutually agreed deadline of last week, but agreed to extend that until today (Wednesday). However it is now time for us to move on and concentrate on our other contracting priorities."

Gasnier, who helped Australia beat New Zealand in Brisbane last week, was denied a chance to join Wigan in 2004 when the Dragons refused to release him from his contract.

His current deal expires this year and new Wallabies coach John Connolly was keen to have Gasnier on board.

The nephew of Reg Gasnier, an inductee into the Australian Rugby League Hall of Fame, Gasnier was being lined up join Wendell Sailor, Mat Rogers and Lote Tuqiri in rugby union.

All three former Kangaroos changed codes and played in the 2003 Rugby World Cup final against England.

But two other high-profile league stars, Andrew Johns and Braith Anasta, opted not to make the switch after lengthy contractual talks with the ARU.