The Italian Rugby Federation has announced they are withdrawing their bid to host the 2023 World Cup.
The news is a boost to Ireland's hopes of hosting the tournament, leaving just two other nations - France and South Africa in the running.
The tournament is expected to be held in Europe in seven years' time as the next edition is taking place in Japan in 2019.
Ireland officially lodged a bid to host the event at the start of this month.
In a statement, World Rugby said: "While it is disappointing that the FIR feels unable to proceed, World Rugby fully understands the decision and hopes to see Italy join the process for future Rugby World Cup hosting."
The statement also said that the Irish, French and South African applications are currently before a technical review group.
Applicants who meet the group's criteria will move into a "candidate phase", which is due to being on 1 November.
The host nation will be selected in November 2017.
The Italian bid was closely linked with Rome's apparently doomed bid to host the 2024 Olympic Games.
The city's mayor, Virginia Raggi, publicly withdrew support for that bid last week.
The bid is likely to be withdrawn when the city council, which is dominated by Ms Raggi's anti-establishment Five Star Movement, votes on it on Thursday.
“Our candidature has always been strictly connected to the Olympic Games bid for Rome 2024 and, as agreed with the Government and the Olympic Committee, we are unable to provide necessary commitments for us to move forward," said FIR president Alfredo Gavazzi.
“We remain convinced of the strength of our bid and are well aware of the benefits that hosting the Rugby World Cup would have brought to Italy.
"We’re conscious to lose a fantastic chance to promote our values and our sport in our country, but we must sadly accept that today we can no longer move forward with our bid."
