The Australian state of Victoria has pulled out as host of the 2026 Commonwealth Games, prompting uncertainty over whether the competition will go ahead.

Victorian premier Daniel Andrews cited the ballooning cost of holding the event in his decision, saying the original estimate of $2.6 billion (£1bn) had reached $7bn (£3.6bn).

His remarks were labelled ‘hugely disappointing’ by the Commonweath Games Federation (CGF), with one official describing the premier’s figures as a ‘gross exaggeration’.

The organisation claimed it had received only eight hours’ notice of the cancellation and said it was committed to finding an alternative host for the event.

Labor politician Mr Andrews said: ‘What’s become clear is that the cost of hosting these games in 2026 is not the $2.6bn which was budgeted and allocated.

‘It is in fact at least $6bn and could be as high as $7bn, and I cannot stand here and say to you that I have any confidence that even [the] $7bn number would appropriately and adequately fund these games.’

Australian Prime Minister and Labor leader Anthony Albanese told reporters the decision was ‘made by the Victorian government’, and hailed the country’s ‘fine record of hosting events’ when asked if he was embarrassed about the situation.

However, the announcement was met with almost universal condemnation by the heads of Australian sporting bodies.

Australia came top of the medal table at the 2022 Commonwealth Games in Birmingham (Picture: David Ramos/Getty Images)

Kieren Perkins, a four-time Olympic medallist in swimming and chief executive of the Australian Sports Commission, said the day had been a ‘difficult’ one.

He added: ‘For many of our athletes, coaches and support staff, Victoria 2026 was going to be an important stepping stone ahead of the Los Angeles 2028 Olympic and Paralympic Games, and for others it was to be the pinnacle of their careers.’

On the prospect of finding a new host, he said: ‘To be able to put it together is going to be quite a significant task, and I think this is going to be a very big test for the Commonwealth Games Federation.’

Commonwealth Games Australia chief executive Craig Phillips said: ‘I would be very careful if I was an international sporting body coming and doing business in this state in the future.’

He continued: ‘The stated costs overrun, in our opinion, are a gross exaggeration and not reflective of the operational costs presented to the Victoria 2026 Organising Committee board as recently as June.’

Victorian Premier Daniel Andrews said the money that was going to be spent on the Games would go towards regional housing and sporting infrastructure instead (Picture: AAPIMAGE)

The CGF, meanwhile, argued that the increase in expense was not its responsibility.

In a statement, it said: ‘Since awarding Victoria the Games, the government has made decisions to include more sports and an additional regional hub, and changed plans for venues, all of which have added considerable expense, often against the advice of the CGF and Commonwealth Games Australia.’

The competition was last held in Australia when Gold Coast hosted in 2018.

Cities around the country will hold games for the FIFA Women’s World Cup, which will begin on Thursday, and Brisbane is set to host the Olympic Games in 2032.

Brisbane chief executive Cindy Hook told ABC News she was confident those Games would go ahead as planned.

She said: ‘I’m absolutely focused on the budget, the organising committee will be self funding and we have a long run way and more time than they did to plan, and I think that time if used well, will be very much to our advantage and I’m confident in our model.’

The 2026 competition was due to be held in the Australian state of Victoria.