Speculation over the identity of a potential new A-League club has intensified, after Football Federation Australia (FFA) sharpened the sword for Wellington Phoenix’s downfall.

The Phoenix could exit the competition as soon as next season following the FFA’s decision on Monday not to grant their request for a 10-year licence extension.

The New Zealand franchise confirmed on Tuesday they would meet to consider their options, which may include requesting a four-year extension and a temporary respite.

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But, given FFA boss David Gallop’s assertion that the board’s unwillingness to stretch their life beyond that was “in the best interests of Australian football”, to stay until 2019/20 may only prolong the inevitable.

The Phoenix have also questioned the FFA’s reasoning for their long-term exclusion.

“The club will be seeking greater clarity around the reasons for rejection of the proposal and how the FFA is evaluating the Phoenix’s contribution to game development, player pathway, commercial factors, broadcast rights and the long-term success of the A-League, to which the Phoenix is already making a material and positive contribution,” the club said in a statement.

Gallop had cited all of these factors when explaining the FFA’s decision.

The financial element aside, the club has the added complication of distance and the fact that it falls under the Oceania Football Confederation and not Asia, like the competition’s nine Australian outfits.

If Wellington was to leave, it would present an opportunity for a 10th Australian team to enter the league as a replacement and fuels reports of a potential new franchise in southern Sydney.

Shaping as favourites are the Sutherland Shire or St George areas, both of which have big local talent pools and are seen as regions which could quickly gain traction with fans.

A New South Wales south coast club may also be an option, with National Premier Leagues NSW side Wollongong Wolves known to have A-League ambitions, while there have been suggestions a joint southern Sydney-Illawarra venture could create a viable new fan base.

The ACT’s governing body Capital Football has also lobbied for a Canberra team to join the fray.

Last week, Sydney FC coach Graham Arnold was sceptical about the possibility of five NSW-based sides in a 10-team competition, saying it was simply too many for a national league.

Should a third Sydney team join the Sky Blues and the Western Sydney Wanderers, it would mean an increase in derby fixtures from three to nine each season.

“I know that derbies are special but how many derbies can you have? Maybe Brisbane needs one, maybe Adelaide could do with one,” Arnold said.

“Do we need another one? We’ve already got four teams in NSW. A fifth will maybe make one too many.”