Mining billionaire Andrew Forrest has called on Australian Rugby Union (ARU) chairman Cameron Clyne to resign over the decision to axe the Western Force, branding the decision-making process a "charade".

The club was dropped from the Super Rugby competition earlier this month, after the ARU decided to contract the number of teams to 15.

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Mr Forrest issued a statement this morning, highlighting an internal ARU document that labels the legal risk to dropping the Force "low", while the Rebels and the Brumbies are labelled "high".

"There is no legal obligation to retain the Western Force in the Super Rugby competition following a renegotiation of the broadcast rights," the document reads.

However, in relation to the Brumbies and Rebels, the advice reads:

"Unless circumstances change the ARU would need to renegotiate an agreed termination of the Participation Deed. "If a negotiated exit is not achievable, an attempt by ARU to terminate … the deed without cause would constitute an unlawful termination."

Mr Forrest said the document indicated the ARU made the decision to cut the Western Force back in February, despite the body saying it was still trying to choose between the Force and the Rebels up until this month.

'I'd been lied to so many times'

The entrepreneur said he was gutted when he found out the ARU had not been upfront about the real reason they wanted to cut the Western Force.

"I had a sense of deep disappointment, almost revulsion that I'd been lied to so many times," he said.

"What I saw from a document dated late February made the whole thing a lie.

"The Western Force was set up to be ambushed, that it was going to be bullied into submission."

Mr Forrest predicted there was a strong chance the ARU would reverse its decision to drop the Force from the competition.

"I think if we run an equal, fair and transparent process our chances are absolute, they are 100 per cent," he said.

Mr Forrest said he would look at all the options available to the team if its legal appeals failed, including setting up a rival competition.

He also hit back at earlier comments from ARU chief executive Bill Pulver that he was too late with his offer of $50 million in sponsorship to save the team.

"I ask the ARU to never say again I stepped in late — had I known what the chairman knew I would have stepped in back in February," he said.

"I do not blame Mr Pulver, who I respect as a frank and honest servant of the board, but I do hold the chairman accountable and call on him to resign."

Mr Pulver has already indicated he will step down.

Sorry, this video has expired Australian Rugby Union CEO Bill Pulver announces his resignation

ARU rejects Forrest's claims

In a statement, the ARU rejected Mr Forrest's claim that the process was a charade, along with the suggestion the decision to axe the Force was taken in February.

"This was not the case and there are no documents which contain this information," Mr Clyne said.

"At various stages of this process, the ARU Board has requested recommendations and information from ARU management to assist with making its decision.

"I can only assume that Andrew has been provided with a document that contains some of the analysis that was undertaken by ARU management at the request of the Board, to assess the many implications and considerations for exiting each of the three teams we originally assessed, which included the Brumbies, Melbourne Rebels and Western Force."

Mr Clyne also maintained Mr Forrest's offer of support came too late.

"Andrew's offer, which was incredibly generous, was not made until after the Board's decision had been made," he said.