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The end of May dates offered by the Brisbane-based Australian Centre of Excellence clashed with his prior commitments, manager Kushil Gunasekera said.
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"Murali regrets very much that he can't make it. He was looking forward to sharing his knowledge, and grateful that Australia was good enough to offer a contract despite what's happened in the past," Gunasekera told AFP.
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Gunasekera said the 38-year-old was busy till July, having signed up with Indian Premier League team Kochi until the end of May and English county side Gloucestershire until the end of June.
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The world's leading Test and ODI wicket-taker has at times endured a strained relationship with Australia after being called for throwing by umpire Darrell Hair in 1995 and heckled by Australian fans.
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His bowling action was called into question numerous times by the International Cricket Council.
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"With time and age, Murali has forgiven that incident. His philosophy is to forgive and forget. He doesn't harbour any grudges against Australia, its players or fans," Gunasekera said.
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The spin legend, who has a world record 800 wickets in Tests and 523 wickets in one-day internationals, is currently playing his fourth and final World Cup for Sri Lanka.
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He plans to bow out of international cricket after the tournament, following his retirement from the Test circuit in July last year.
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Sri Lanka, 1996 winners and 2007 finalists, have said they would like to win the World Cup for Muralitharan.
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