The 28-year-old wing had been expected to be among the 10-man party leaving this morning for next weekend's Sydney event after an insurance wrangle - which also involved Offiah's club, Wigan, and his agent, Alan McColm - had apparently been settled.
The Rugby League thought it had sorted out the problem by agreeing to top up Offiah's international insurance cover to what it considered was a satisfactory level.
The row, though, was back on again because of claims that the cover was still insufficient. The Rugby League's David Howes said: 'We tried to offer a mediation service, but the demands being made make that impossible.'
Meanwhile Shaun Edwards, Wigan's Test half-back, withdrew from the squad because of injury. Edwards, who will be replaced by his Wigan team-mate, Phil Clarke, has a shoulder problem.
Edwards, who played in Wigan's 24-16 Silk Cut Challenge Cup defeat of Wakefield Trinity yesterday, said: 'The physios have advised me not to make the trip.'Reuse content