KUALA LUMPUR - Malaysia has rejected an offer to host the 2026 Commonwealth Games due to uncertainty over costs and insufficient funding offered, its government said on Friday, in a major setback for the quadrennial multi-sport event.

Malaysia was asked to step in after the Australian state of Victoria withdrew as host, citing ballooning costs, with the Commonwealth Games Federation (CGF) offering 100 million pounds ($126 million) in supporting funds.