Sydney will miss out on hosting the Socceroos' biggest World Cup qualifying match for the third successive campaign, with the Japan home fixture set to be played in Melbourne.

Fairfax Media understands Australia's game against their Asian rivals will likely be played at the MCG on October 11 in preference to Sydney's Allianz or ANZ Stadium.

Football Federation Australia invited bids from state bodies to secure the hosting rights of the most high-profile of the Socceroos' qualifying matches and is understood to have reached an agreement in principle with the Victorian government and the MCG with a deal to be formally sealed soon.

An FFA spokesman said a deal has not yet been reached. However, the NSW government and venues in Sydney now hold little hope of securing the match with Melbourne expected to be awarded hosting rights.