RugbyWA's appeal against Western Force's axing from Super Rugby was dismissed by the NSW Supreme Court on Tuesday.
Judge David Hammerschlag ruled in favour of the Australian Rugby Union after deliberating for close to two weeks, confirming the governing body was within its right to dump the Force from Super Rugby.
RugbyWA is now considering its options, with a challenge in the NSW Court of Appeal the next logical step.
"We are disappointed to announce that RugbyWA has been unsuccessful in appealing the arbitration decision in the Supreme Court of New South Wales allowing the Australian Rugby Union (ARU) to terminate the Alliance Agreement," a RugbyWA Statement read.
"This now means the ARU have the ability to remove the Western Force from the Super Rugby competition. Based on previous correspondence we are expecting the ARU to confirm the termination of the Western Force's participation in the Super Rugby competition. We understand that the ARU intend to continue with the Perth Spirit in the National Rugby Championship.
"Since it was announced in April that one Australian team would be removed from the competition, it has been apparent that the ARU fully intended to discontinue the Western Force, a decision that disregards the nation's third largest rugby playing community and destroys rugby union's national footprint.
"As we understand, the ARU had formed the view in February this year that the Western Force were the only team that could legally be removed from the competition, for the ARU to suggest there was an objective and transparent process, evaluating the merits of both the Western Force and Melbourne Rebels, was misleading and disrespectful to both RugbyWA and the Victorian Rugby Union. This has caused significant damage to both the game and the Super Rugby competition and reflects poorly on the ARU's own values of honesty and integrity."
The timing of the decision could not be worse for the ARU with the Wallabies due to resume their Rugby Championship campaign against the Springboks in Perth this weekend.
There had been talk of a boycott from passionate Force supporters but both the club and retiring skipper have urged fans to get along to the game at nib Stadium, but to do so wearing their blue Force jerseys.
Hodgson also took to Facebook to encourage fans to attend the Test, the skipper calling for support for Force players Dane Haylett-Petty, Adam Coleman and Tatafu Polota-Nau who are all likely to start on Saturday night.