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A New York judge ruled on Tuesday that the next America's Cup cannot be held in Ras al-Khaimah, one of the United Arab Emirates, because yachting rules dictate it must be held in the southern hemisphere.

The court ruling was a setback to defending champion Alinghi, which had chosen the site for the race against challenger BMW Oracle.

Even though the judge cited rules dating back to 1887 that would force the race into the southern hemisphere, it could still be held north of the equator because under a previous ruling neither side objected to holding the race in Valencia, Spain.

The two rival teams scheduled to face off in February in the 33rd edition of yachting's most prestigious race have been tangled in a long legal battle over the terms of the race. Tuesday's ruling adds a new layer of uncertainty.

"Since RAK is in the northern hemisphere, it cannot under the Deed of Gift take place in RAK," said New York State Supreme Court Justice Shirley Kornreich, using an abbreviation for the emirate.

The judge declined to discuss BMW Oracle's contention that holding the race in Ras al-Khaimah would create a security risk for U.S. sailors due to possible attacks from al Qaeda or other militant groups.

ALINGI DISAPPOINTED

According to the Deed of Gift, the document that established the cup's rules, races held between November and May must take place in the southern hemisphere.

A previous ruling held that Valencia, Spain -- which is in the northern hemisphere -- was the only exception to that rule because it was the site of the previous race in 2007 and because both sides agreed it was an acceptable alternative.

Defending champion Alinghi, which sails under the colours of Societe Nautique de Geneve and is backed by biotechnology billionaire Ernesto Bertarelli, declined to say whether it planned to appeal and called the ruling disappointing.

"Ras al-Khaimah has put enormous time and effort into this 33rd America's Cup project. We thank them and feel sorry for this unexpected result out of the New York court," Lucien Masmejan, a lawyer for Alinghi, said in a statement.

A spokesman for BMW Oracle, which sails under the colours of the Golden Gate Yacht Club and is backed by Oracle CEO Larry Ellison, said the California team expected the race to be moved to Valencia, Spain.

Russell Coutts, skipper and chief executive officer of BMW Oracle Racing, said this marked the first time in the history of the America's Cup that a judge had ever rejected a venue chosen by the defending champions.

"We've been trying to argue for fair rules and a fair America's Cup," he said.

The two sides also argued over how boat measurement guidelines should be applied, and Kornreich said she expected to issue a ruling on that issue by the end of the week.

Alinghi called BMW Oracle's multi-hulled vessel a "star wars boat" and suggested it exceeds size limitations. BMW Oracle maintains that it meets guidelines established by the Deed of Gift.

(Source: Reuters)