Confirmation that the IRB rugby sevens finals have been awarded to Murrayfield has been met with disappointment in the Scottish Borders.
The sevens event will not be coming to Melrose in 2007
Scottish Rugby Union bosses have agreed a five-year deal - with the door still open to a Melrose bid after 2007.
Chief executive Gordon McKie said they were "willing to explore" staging the event in the Borders in future.
Council leader David Parker said he was pleased for Scotland but "deeply disappointed" for his region.
Mr McKie said the decision was excellent news for sport in Scotland.
He said the SRU had been unable to conclude the necessary financial arrangements to bring the event to Melrose in 2007.
That view has been rejected by Mr Parker.
"We are pleased for Scotland, but deeply disappointed that the SRU was not able to bring the event back to the internationally recognised home of rugby sevens - Melrose," he said.
"The result is particularly sad, considering what an excellent, well-planned and well-financed business case we had put together for the event."
The chief executive of Scottish Enterprise Borders, David Gass, was also disappointed by the decision.
He said a "strong, ambitious and robust case" had been made for Melrose.
A renewed bid for the town in 2008 has already been promised.