Phoenix had been in talks with the FFA to join the new youth league with a squad mainly based in the ACT.

Capital Football had welcomed the idea and a decision from the FFA was expect on Friday.

But now Capital Football have revealed Phoenix have put the idea on ice for next season.

"Capital Football regrets to announce that the Wellington Phoenix’s proposal of basing a National Youth League team in Canberra for this coming season has been deferred for 12 months at the request of the Hyundai A-League franchise," a statement said.

The Phoenix outlined in a letter to the Football Federation of Australia that their main priority for the 2008/09 season will be to “develop the club within the A-League and Wellington and grow their membership, sponsors and revenue before embarking on the project”.

The New Zealand side had intended to leave a ore of 10-11 Australian youngsters based in Canberra for the youth team, while additions to the squad would be flown in from Wellington as required.

Capital Football CEO, Heather Reid, said she was disappointed by the decision but understood why it was made.

“It’s a shame that the Phoenix came to this decision but we have to remember the Wellington franchise only made their Hyundai A-League debut last season so they’re looking to further settle themselves before joining the National Youth League,” Reid said.

Capital Football has vowed to continue to fully support and build on this application of a proposed National Youth League team in Canberra for the 2009/10 season.

Reid added: “It’s unfortunately but it’s not all bad news, Capital Football has since established a close relationship with the Wellington Phoenix and together we will to continue to work towards establishing a youth team in Canberra next year."