New Zealand set up Super Rugby Aotearoa in 2020 for its five professional franchises after the broader Super Rugby championship was abandoned due to Covid-19.
New Zealand Rugby had hoped to include a team from the Pacific islands for next year's tournament and invited expressions of interest from Australia.
However, its chairman Brett Impey said the pandemic had shelved those plans and "forced" the organisation to think domestically again next year.
"The last thing we want is for any team to come in and get smashed," Impey said.