NEW YORK — A New York appeals court declared today that a Spanish yacht club is the challenger of record for the next America's Cup, not a California club.

The state Supreme Court's Appellate Division ruled 3-2 that Club Nautico Espanol de Vela should be the challenger of record, giving it the right to negotiate terms of the next competition with the current Cup holder, Alinghi of Switzerland. The decision reversed a lower-court ruling that made the Golden Gate Yacht Club of San Francisco the challenger.

The appeals court also gave CNEV 10 months to prepare for the regatta, starting when it receives a copy of the appellate ruling.

Although Golden Gate Yacht Club can appeal, Tuesday's ruling apparently means the next America's Cup will be contested in a traditional multi-challenger format.

GGYC backs BMW Oracle Racing, which is owned by Silicon Valley maverick Larry Ellison. BMW Oracle Racing and Alinghi have been training for an expected one-on-one showdown in 90-foot multihull boats, the result of a lower-court ruling that GGYC was the challenger of record.

There was no immediate comment from either syndicate.

However, Desafio Espanol chief Augustin Zulueta told The Associated Press: "We're very hopeful that this means an end to this long process and that it will allow all of the teams to race the next America's Cup at Valencia."

Zulueta would not confirm whether the Spanish syndicate would push to hold the 33rd America's Cup in 2009 as originally planned.

The dispute between Alinghi and BMW Oracle Racing began shortly after Alinghi retained the oldest trophy in international sports with a 5-2 victory over Team New Zealand in Valencia in July 2007.

Alinghi, owned by Swiss biotech tycoon Ernesto Bertarelli, announced it had chosen CNEV as Challenger of Record to help negotiate the rules for the next multi-challenger regatta. GGYC issued a challenge, then sued, saying the Spanish club was a sham and that the Swiss were trying to tilt the rules for the next regatta in their favor.

Justice Herman Cahn of the New York Supreme Court ruled in November that GGYC was the valid Challenger of Record, an order he let stand in March when he refused to hear new arguments from Alinghi.

Since BMW Oracle Racing and Alinghi couldn't agree on terms for a traditional America's Cup regatta, the Deed of Gift match was the next option.

Alinghi then took the case to the appeals court.