A judge in New York has ruled that the next America's Cup cannot be held in Ras al-Khaimah, one of the United Arab Emirates, because Deed of Gift dictates it must be held in the southern hemisphere.
BMW Oracle and Alinghi, which are scheduled to meet in the 33rd edition of the race in February, have been tangled in a long legal battle over the terms of the event.
In August defenders Alinghi chose the UAE to host the next Cup, saying it offers perfect weather and great sailing conditions.
The America's Cup Deed of Gift requires any regatta held between November and May to be sailed in the southern hemsiphere, but the judge supports a previous court decision that allows a return to Valencia.
Neither of the rival teams has commented on where they now expect the Cup to be sailed next February.