Mining magnate Andrew Forrest's plans for a new Indo Pacific Rugby Championship have stalled after Rugby Australia hit him with a series of “un-commercial” demands.

RA has issued a four page letter of conditions that need to be met before they will agree to the tournament.

Forrest needs RA to sanction the new competition to get further approval from World Rugby.

It is understood Forrest is seeking further talks but if there is no agreement the competition could stumble.

He could take it overseas or set up a true rebel competition.

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It is understood this is the third sheet of demands and that RA has demanded more money from Forrest.

Forrest has already spent $500,000 on the plan with 20 people, including former Force captain Matt Hodsgon and ex-Wallaby Michalel Lynagh, presenting the plan throughout the Indo-Pacific region and to World Rugby.

Forrest was prepared to commit $100 million a year to the new competition that was triggered by RA's axing of Western Force from Super Rugby.

He was also set to plough $20 million a year into a new professional Perth-based franchise and had committed to a further $10 million in a new rugby centre of excellence.

A community rally, where Forrest was hoping to make some announcements, planned for Sunday has been postponed.

Hodgson said: "We have now hit a major road block with Rugby Australia in relation to the endorsement of the Indo Pacific Rugby Championship.

"We are continuing negotiations, but the current Rugby Australia position is so un-commercial and unreasonable that it ensures the failure of the IPRC before it even starts.

"We have been trying to meet with the Chair of the Rugby Australia working group but he is unavailable until next week even at this critical time.

"It remains obvious to us after three months of continuous negotiations that Rugby Australia doesn’t have the best interest of the Western Australian rugby community at heart.

"Rugby Australia’s demands include money to support east coast based programs rather than supporting the WA community, even as they are crippling our local rugby infrastructure.

"We will not be sending any more money over east, our money will remain for our people and to grow our game in Western Australia.

"We are not giving up – far from it."