The head of the provincial government of New South Wales, Premier Morris Iemma, has ruled out moving next year's World Youth Day rally from Randwick Racecourse, despite concerns about the impact on a racing industry already reeling from the equine influenza outbreak, reported The Age.

Racing NSW had called on the government to find an alternative venue for next year’s international youth event.

"What we want to do is to sit down with the AJC (Australian Jockey Club) and negotiate the event," Iemma told Southern Cross Broadcasting.

"That's the most appropriate venue for a whole range of reasons, for crowd control, for ease of transport to accommodate the numbers."

Mr. Iemma said there was no alternative venue available in Sydney and the government would work through a solution that caused minimal disruption to horse trainers and the AJC.