The most contentious America's Cup in the 158-year history of the event could be headed to Australia, if the teams can agree to end their long, bitter court fight.

Defending champion Alinghi of Switzerland told a New York judge Thursday that it would race American challenger BMW Oracle Racing off Australia in February as a compromise. Alinghi prefers to race in the Persian Gulf.

The yachting showcase has been beset by a two-year legal tussle between bickering billionaires Larry Ellison and Ernesto Bertarelli.

The Swiss haven't named a specific port, but said several locations on Australia's east coast would be suitable for the best-of-three showdown in giant multihulls, the fastest, most extreme boats built for the America's Cup.

"This is a venue that should be acceptable to both teams if, as expressed publicly, the true intention of BMW Oracle is to race for the America's Cup on the water," Alinghi said in a statement.

Alinghi's yacht club, Societe Nautique de Geneve, made the offer in a letter to New York State Supreme Court Justice Shirley Kornreich. If the justice agrees, and the Americans agree to drop legal proceedings, the Swiss said they would select a Southern Hemisphere location within 10 business days.

"This is an elegant solution to eliminate all litigation," said Barry Ostrager, a New York lawyer who represents SNG.

Philip Bowman, an attorney San Francisco's Golden Gate Yacht Club, which backs the American challenger, sent a letter to Ostrager asking him to identify which venue on Australia's 2,500-mile east coast the Swiss want. Racing is scheduled to start Feb. 8.

"This information is necessary to ascertain whether it would be possible to prepare for a race at the chosen location on short notice," Bowman wrote.

Kornreich is scheduled to hear the two sides' latest arguments on rules and the venue on Friday.

Alinghi originally chose Ras Al-Khaimah, United Arab Emirates, as the venue. Last week, Kornreich ruled that RAK was ineligible because of the stipulation in the 19th-century Deed of Gift that the America's Cup can't be sailed in the Northern Hemisphere between Nov. 1 and May. 1.

BMW Oracle Racing, owned by Ellison, the CEO of Oracle Corp., also objected to Ras Al-Khaimah on security grounds because it is close to Iran. Continued...