Australia appear to have made up their mind to pull out of the Champions Trophy after International Cricket Council (ICC) deemed Pakistan safe to hold the tournament in September.

A Cricket Australia (CA) source confirmed that Australia would boycott the tournament, while CA chief executive James Sutherland said he had hoped for an alternate venue.

"In some ways it would have been easier if the ICC had decided to move the event," he said.

"Certainly it would have satisfied us, it would appear it would have satisfied the players, and I think it would have satisfied commercial partners."

The path has been cleared for an Australian boycott with confirmation that any team refusing to tour Pakistan will not be penalised. CA though had been alerted that it can face a $10 million fine if it refused to send its players to the tournament.

ICC's chief executive, Haroon Lorgat, said no player opting to pull out would be penalised, nor would their respective boards, while Sutherland says the usual fines for pulling out of a series will not apply.

High risk

For Australia, there is also safety in numbers, with England and New Zealand set to refuse to send their teams to the event.

The move is likely to bring CA at clash with Asian nations -- India, Pakistan and Sri Lanka -- who voted against shifting of the event.

The Australian Cricketers Association (ACA) insists security risks are too great in the bomb-ravaged republic and has advised players not to go.

"The situation in Pakistan is no better now than it was in April (when Australia pulled out of a Test tour there)," ACA chief Paul Marsh said.

"Based on the independent information and advice received, we maintain that the risks are simply too great for the ACA to recommend that our players tour Pakistan at this time."

The New Zealand Cricket (NZC) board too said it was "very disappointed" with the decision not to shift the tournament.

Pakistan safe for Champions trophy: Lawson

Playing down security concerns in Pakistan during the Champions Trophy in September 2008, Coach Geoff Lawson has urged all the international teams to tour the country and make the biennial event a resounding success.

"I have been in Pakistan since last year and I know the ground realities of how safe it is in this country. Anybody can make statements sitting outside no matter if it's Australia, England or New Zealand," he said referring to the three teams, who have been vociferously opposing to having the tournament in Pakistan.

"They should come to Pakistan and experience for themselves what this country is exactly like. The ICC took the right decision to have the tournament in Pakistan," Lawson said.

Lawson was also critical of the Australian board and its players when they pulled out of their Test tour to Pakistan early in 2008 and insisted it was as safe in Pakistan as in anywhere in the world.

"I think no one can make absolute guarantees but the security provided for cricket in Pakistan is absolutely strong and I am sure it will be the same in the Champions Trophy," said the Australian, who is working on a two-year contract with the national team.