Australia A will not compete in next year's Pacific Nations Cup, the Australian Rugby Union has announced.

The ARU board announced last night a "strategic decision" to pull out of the competition amidst the current economic environment.

Australia A finished second in the past two years of the tournament, which has given fringe players a chance to stake their claims for Wallabies selection.

The ARU also announced it would suspend the 2009 Australian Rugby Shield, A round robin tournament involving teams from Victoria, South Australia, Northern Territory, NSW Country and Queensland Country.

With Australia A pulling out, the IRB Pacific Nations Cup now only have five teams remaining New Zealand Maori, Fiji, Samoa, Tonga and Japan.

The International Rugby Board (IRB) will decide later whether to include a new team, or go ahead with the competition with only five teams.