The stoush over the Australia Network, Official Media Sponsor of the Swannies' Grand Final Parties, enters the next phase.

Australia Network televises the AFL into Vietnam and Asia. It’s also the Official Media Sponsor for the Vietnam Swans AFL Grand Final Parties.

Tonight, Katharine Murphy reports in The Age newspaper on the latest news coming from the disaster prone tender process to run the Australia Network for the next 10 years. Below is an extract.

Australia Network tender delayed.

THE ABC will keep hold of its overseas television network service into 2012, with the Gillard Government moving to cancel a leak-prone $223 million tender hotly contested by Sky News.

The government is poised tonight to cancel the Australia Network contract, effectively reserving the service for the national broadcaster until August 2012. A formal announcement is expected shortly.

The Age understands Cabinet has resolved to make a final decision on who will run the service — the ABC, or Sky News — by the first quarter of 2012.

The ABC and pay television broadcaster Sky News, part owned by Rupert Murdoch, have been locked in a vigorous competition to run the international television service. The decision — or lack thereof — has heightened sensitivities in the government’s already strained relationship with Mr Murdoch’s company, News Limited.

The Australia Network tender has been plagued by leaks, exposing a fault-line of internal tension between Foreign Minister Kevin Rudd and several of his Cabinet colleagues. Mr Rudd — the original designated decision-maker for the tender — was sidelined by his colleagues in June.

The government resolved the final decision should be taken by Communications Minister Stephen Conroy, and the Cabinet.

The cancellation of the tender imposes yet another delay in the process, which is unlikely to be welcomed by the players.

Update – 8 August 2011: