Political intrigue has hit international rugby with Australian officials fuming over Andrew "Twiggy" Forrest's recruitment of a high-ranking World Rugby official to head up his Latin American mining interests.

As Rugby Australia (RA) and the billionaire iron ore magnate are locked in an increasingly adversarial arm-wrestle over the fate of Forrest's rebel World Series Rugby competition, it emerged that Forrest had appointed World Rugby vice-chairman Agustin Pichot as president and director of Argentina Fortescue South America.

The appointment, which was announced in June, has enraged RA officials, who see it as a conflict of interest and potential breach of trust as Pichot has long been a southern hemisphere ally and was one of the driving forces behind Argentina's inclusion in the Rugby Championship and Super Rugby.

The tension came to a head at a World Rugby executive committee meeting in Dublin in March, when RA board powerbroker Brett Robinson was understood to have confronted Pichot about his relationship with Forrest and asked him to declare a conflict of interest to the committee, which is World Rugby's top decision-making body.

Fairfax Media understands Pichot did so in front of the 11-person committee, but the announcement in June of the 71-Test former Argentina international's role as chief executive of FMG in Argentina has raised eyebrows again.

An article covering Pichot's appointment in an Argentinian news site stated: "The love for this sport (rugby) provided them with an interesting relationship that led the Anglosaxon to hire the services of this distinguished sportsman. To this end, Forrest sent Daniel Meilan, (Argentina's) Mining Secretary, correspondence to confirm Pichot's new responsibilities and his (Forrest's) wishes to invest in Argentina in the next five years."

In May, Forrest told The West Australian that FMG was exploring copper, lithium, nickel and graphene exploration in Ecuador, Colombia and Argentina.

On the rugby front, he is moving aggressively to expand his World Series rebel concept, which is in its first season and needs RA's backing before going to World Rugby for official ratification.

But with talks stalled for some time over Wallabies eligibility of overseas-based players and player welfare concerns, there are fears Forrest could take the concept to either the Argentine Rugby Union or the newly formed Rugby Americas, of which Pichot is president.

Forrest shut down that suggestion when contacted by Fairfax Media.

"We do not plan to take WSR to Latin America. It is an Asia-Pacific competition designed to expand rugby’s reach and relevance in our region, and we are excited by and focused on this mission," he said. "We consider Asia a very important growth area for the game, with about 60 per cent of the world’s population and 80 per cent of the world’s youth living in largely the same time zone."

Under pressure to bring Forrest and his billions of dollars into the tent, RA is understood to be concerned that Forrest's connection to Pichot is too close for comfort given the latter's proximity to delicate World Rugby and SANZAAR strategy discussions in recent years and Forrest's push to have WSR rival Super Rugby.

A World Rugby spokesman said Pichot was not involved in any discussions about WSR.

"Agustin Pichot declared his business interests in line with World Rugby’s code of conduct and conflict of interest register for elected officials and, as per the criteria, he is not involved in any discussion, meeting or processes relating to Andrew Forrest’s rugby competition," the spokesman said.

"As previously stated via media release in 2017, any proposed competition and expansion must be approved by Rugby Australia in the first instance and also the union of any participating team, while reassuring the World Rugby EXCO that the concept is in the best interests of the development of the game. This includes key player welfare, discipline, match officiating and anti-doping provisions."

Pichot was contacted for comment, while Rugby Australia declined to comment.

Forrest said he met Pichot at a rugby match and was impressed with the Argentinian's "energy and integrity".

"Fortescue has been actively searching for some time for a business leader capable of replicating its success in Argentina and we found that person in Mr Pichot. I found in Gus a gentleman with energy and integrity, who shares with me a fervent desire to improve Argentina by developing its economy," he said.

"Gus informed World Rugby of this appointment to FMG in April, and of course has no role with the Western Force/WSR."

In its latest iteration, which was sent to RA this week, WSR pitches a seven-team competition spanning Japan, China (Hong Kong), Singapore, New Zealand, a Pacific Islands nation and Australia.

Fairfax Media understands Forrest or his WSR representatives have been making approaches to Tonga, Fiji and Samoa about the possibility of basing a Pacific Islands team in western Sydney, a move that would be seen as a serious incursion into RA's backyard. Western Sydney is also a vulnerable spot for NSW and RA administrators given this year's axing of the Penrith Emus from the Shute Shield.

Forrest has enlisted rugby luminaries including former Wallabies great Michael Lynagh, former Wallabies and Crusaders coach Robbie Deans and former Western Force and Wallabies veteran Matt Hodgson to promote the competition.

Deans, who has been coaching Japanese Top League club Panasonic Wild Knights, talked up the concept in Perth this week, where he is preparing for Friday's match between the Force and the Wild Knights.

"His timing is impeccable," Deans said. "Asia's the future, whether we like it or not.

"Economically, population wise - the interest is already there from a market perspective.

"They'll tell you there's a greater support base in places like China than there is domestically in Australia and NZ. So the scope for growth there is significant."

Deans said Super Rugby was on the wane.

"The horse has bolted to some extent, which they probably rue, because once people turn off, they find other things to do," he said.

"Some would suggest the product's been compromised. Personally I thought the product was better this year - more competitive across the board. But people have stopped watching - that's their biggest issue.

"Change is inevitable. There's no doubt it won't be the same going forward. They really have to capture the imagination of the public again."

One of the provinces understood to be the target of Forrest's mining exploration is San Juan, a province in western Argentina where the Pumas hosted Tests against Wales this year and England in 2017.