Another part of New South Wales, the South Coast, is also putting together a bid but the FFA believes although they will be able to manage financially, there are other factors that region may not be able to meet.
It is now believed that perhaps a joint bid between the two regions may be put in place that would see the club based in West Sydney but also playing home games in Wollongong.
"Ultimately, a club has to reside in the proximity that it plays but that doesn't mean it can't have a relationship with a region or a team that sits outside that region," FFA CEO Ben Buckley said.
" you can have successful models where teams have multiple regions, if you like.
"But for a club to be successful it has to be based in its defined territory. They need to be based in Western Sydney or Wollongong, not have a halfway house."