"Late last month we learned that Unions who had previously expressed their commitment to participate were experiencing financial difficulties and their withdrawal has had a direct impact on the viability of the tournament," said Tournament CEO David Blackburn. "Deaf Rugby is a fully amateur sport and we asked would-be participating Unions to confirm their hotel bookings by the end of March this year.
"Early this month we received confirmation that several Unions, including those from the Southern Hemisphere, were unable to attend, which forced the Board of DRWC2005Ltd, the Tournament Organisers, to decide upon cancellation of the event.
"A lot of work has already gone into the planning and organisation of the competition and the Board has recommended that the WDRU retains the right to hold the Deaf World Championships in Wales at a later date.
"I wish to thank my fellow Directors for their hard work and commitment over the past two years, and the Welsh Rugby Union, and in particular its President Mr Keith Rowlands, who chaired DRWC2005Ltd, for their invaluable support."
The first Deaf World Championship was held in New Zealand in 2002 and was won by the Wales Deaf team who defeated the hosts New Zealand in the final in Auckland.
The International Deaf Rugby Organisation, the governing body for Deaf Rugby worldwide, will meet in August this year to review the options for the staging of the 2nd Deaf Rugby World Championship following the cancellation of the 2005 event.