The decision was confirmed by Victoria’s State Premier Daniel Andrews at a media conference this morning.

Explaining the move to pull out with less than 1,000 days until the event was due to begin Andrews said he "would not take money out of schools and hospitals in order to fund an event that is three times the cost {which} is estimated and budgeted for last year."

CGA chief executive Craig Phillips said the news was a significant let down and described the numbers surrounding potential cost overruns as "a gross exaggeration."

"The announcement made by the Victorian Government today is beyond disappointing," Phillips said.

"It’s a comprehensive let down for the athletes, the excited host communities, First Nations Australians who were at the heart of the Games, and the millions of fans that would have embraced a sixth home Games in Australia.

"The multi-city model for delivering Victoria 2026 was an approach proposed by the Victorian Government, in accordance with strategic roadmap of the Commonwealth Games Federation (CGF).

"It was pitched to the CGF after the CGA had sought interest to host the Games from several states.

"They did not step in as hosts at the last minute, as indicated by the Premier earlier today.

"The detailed budgetary implications announced today have not been sighted or discussed with the CGF or CGA ahead of being notified of the Government’s decision.

"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."

Andrews claimed in his announcement that the original forecast budget for the event of AUD$2.6 billion (£1.3 billion/$1.7 billion/€1.5 billion) was now expected to be more than double that, at AUD$6 billion (£3.1 billion/$4 billion/€3.6 billion).

Phillips claimed money could have been saved by using purpose-built stadia in Melbourne rather than temporary venues in the Victoria region.

"The Victorian Government wilfully ignored recommendations to move events to purpose-built stadia in Melbourne and in fact remained wedded to proceeding with expensive temporary venues in regional Victoria," he added.

"CGA would welcome the opportunity to review the financial analysis prepared independently of those who have been involved at the coal face of planning and delivery.

"We thank the dedicated staff at the Organising Committee and the Office for the Commonwealth Games for their effort, acknowledging that today will be a tough time for those who have worked so hard."

Australia’s Commonwealth Games team Chef de Mission Petria Thomas described the news as "a significant blow" to the country’s athletes.

"This is a significant blow to the hundreds of athletes and their support teams working toward qualification for a Games here at home - I am thinking of them today," Thomas said.

"We understand the disappointment and the impact this decision will have on their ability to plan and prepare for the Games in 2026, and we are committed to finding a resolution alongside the CGF.

"The news that Victoria will no longer be hosting the 2026 Commonwealth Games is extremely disappointing, but my team and I are totally committed to delivering for Australia’s athletes and our team when a new host is found."

Victoria’s withdrawal means 2026 will be the second successive edition of the Commonwealth Games where the original host has pulled out.

Durban in South Africa was originally awarded the 2022 edition but pulled out after it failed to meet various financial deadlines, with Birmingham in England announced as a replacement five years before the event took place.