Australia and New Zealand’s joint bid to host the 2023 Women’s World Cup has taken a significant step forward after its main rival Japan announced on Monday it was withdrawing its bid.

Ahead of Fifa executives gathering to decide the hosting rights on Thursday, The Japan Football Association [JFA] said international support for Australia and New Zealand’s bid, plus the postponement for a year of the Tokyo 2020 Olympics had been factors in the decision.

“Today, we decided to withdraw our bid to host the 2023 Women’s World Cup,” JFA President Kozo Tashima said. “I could not be more disappointed to have to make this very difficult decision.”

Tashima noted that a recent Fifa evaluation had praised Japan’s proposal but rated Australian and New Zealand’s bid even higher.

“Japan’s position in the race is far from optimistic … in fact I have to say that it is getting even tougher,” Tashima said after a JFA board meeting, adding that the association would consider how best to boost Japan’s presence in women’s football.

The association’s decision means Colombia is the only remaining competitor to Australia and New Zealand’s joint bid.

Earlier in June, Colombia received the lowest rating of all nations when Fifa evaluated each bid.

Japan’s withdrawal comes after Brazil pulled out of the running earlier in June, citing long-term Covid-19 related funding issues.

The JFA’s decision to withdraw will come as a blow to women’s football in Japan.

Japan’s women shocked the USA to win the tournament in 2011 and finished runners-up to the Americans four years later.

Hosting the World Cup for the first time would have been the highlight of plans to develop the women’s game in Japan over the next three years, including the launch next year of the professional WE (women’s empowerment) League.

Guardian Australia has contacted Football Federation Australia for comment.