The rift between the Samoan prime minister and Lakapi Samoa took a turn for the worse on Wednesday, after the Samoan government announced it was withdrawing its support of the national rugby union.

A statement released in Apia on Wednesday night said the government will announce its plans on how it will support rugby in the country moving forward soon.

Prime Minister La'aulialemalietoa Leuatea Schmidt had revealed earlier this year that he was unhappy with how Lakapi Samoa was managing the game and wanted change, threatening to establish a rival body.

He had accused the union of mismanaging funds, alleging that rugby in the country was going downhill because the union was not doing its work.

He said in the statement on Wednesday government will withdraw all its funding and assistance to Lakapi Samoa

"Following months of consultations, and space given to find an amicable resolution to the issues within Samoan rugby, the government has decided to withdraw its recognition and support of the national rugby union, Lakapi Samoa," the government statement stated.

The prime minister said ample time had been given the union to resolve internal issues and division impacting the administration of the union, the issues raised by former players and coaches and the deteriorating status of Samoan rugby on the world stage.

He said government remains committed to the development of rugby in the future "and will see what Union it will give its support to in order to deliver the future development of the sport, to restore the professional standards and Samoa's rightful place in the global rugby arena".

"The government decision is to assist reset Samoan rugby and government has supported the major development pathways and financial assistance already in the pipeline to assist the future development of rugby in the country," he said.

The new Samoa Rugby and Football Union has been registered in Apia and was to have been launched this week. But the launch was postponed with a new date to be announced soon.

Meanwhile, Lakapi Samoa board chairman Namulauulu Sami Leota told Samoa Observer in Apia this week the launch of a rival rugby union could spell disaster for the sport in Samoa.

He said Lakapi Samoa remained the constitutionally established governing body for rugby in the country and was recognised internationally by World Rugby.

Namulauulu, who last month was confirmed as Samoa's rep on the World Rugby Council, said any situation that creates conflict over the administration of the game carries risks that could ultimately affect players, clubs, officials and the opportunities available to them internationally.

World Rugby had told RNZ Pacific earlier that the issue is an internal one that Samoa needed to sort out.

When asked to respond to PM La'aulialemalietoa's calls for a new rugby body to be set up as the governing union for the sport in Samoa, a spokesman had said the issue needs to be dealt with by stakeholders in Apia.

Former prime minister and former Lakapi Samoa board chairman Tuilaʻepa Saʻilele Malielegaoi said in an earlier interview Samoa rugby could suffer if a rival union is set up because the current union is recognised by World Rugby.

He said a possible suspension from World Rugby could happen if there is government interference, similar to Fiji Rugby's fate three years ago.