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The new venue for the eight-team event would be decided by the ICC before its next scheduled meeting in April, the ICC said after the final day of its two-day Board meeting in Perth.
However, Pakistan would "retain the revenue due for hosting the tournament" which is scheduled to be held in September-October this year.
Pakistan would be disappointed to have lost the chance to host the event which was first scheduled to be held in October 2008 but had to be postponed due to the volatile situation in the country.
"The (ICC) Board accepted that, with several members expressing reservations about touring Pakistan, it would be prudent to relocate the event, scheduled for September-October, from that country," an ICC statement said.
"In view of the challenges facing the Pakistan Cricket Board (PCB) which are out of its control, the (ICC) Board agreed that, irrespective of the location of the event, Pakistan would retain the revenue due for hosting the tournament," it added.
The Board also offered to form a task team to visit Pakistan and work with the PCB to find ways to ensure that, wherever possible, international cricket is played in the country in the future.
PCB Chairman Ejaz Butt was among those who attended the meeting, besides ICC President David Morgan, Vice-President Sharad Pawar, Chief Executive Lorgat, Principal Advisor IS Bindra and other chiefs of member boards.
Commenting on the decision, ICC Chief Executive Haroon Lorgat said, "It is unfortunate the ICC Champions Trophy will not take place in Pakistan due to circumstances completely beyond the control of the PCB.
"However, the (ICC) Board has accepted the need for certainty in planning for and delivering a world-class event and will now assess where the event should be held."
The ICC Board also decided that the 2010 World Twenty20 Championship would be held in the West Indies. The women's World Twenty20 event would also take place simultaneously at same venues, just like the 2009 event in England.
"The (ICC) Board accepted the West Indies Cricket Board's recommendation that the ICC World Twenty20 2010 be staged in Barbados, Guyana and St Lucia," the ICC statement said.
"It further agreed to the staging of a joint men's and women's event, mirroring the 2009 event in England. The women's group matches would be played in St Kitts and the women's semi-finals and final would take place on the same days and at the same venues as the men's matches World Twenty20."
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Dream on Indians. You are not good enough and clean for Pakistani people.
what does this chap mean? Indians are not clean enough for the Pakis? The same pakis who bathe only once a week? jumma to jumma!!!
Yes the same pakistani's who won the championship yesterday..when you guys were kicked out...
They are only eligible to host suicide bombing competition, and not any international event.
Due to certain circumstances, it's good decision of ICC. Pakistani team should also be dropped from the trophy.
Keep barking indian dogs. Indians are like lukewarm.
Pakistan always had been a trouble for rest of the world. These people are full of hatred and are dangerous elements to the international society. These ugly and dumb minded people should raise their standards and also try to use their mind. India is our dad... come to papa and ask for help and then only you will be able to survive.