Ueberroth said the bidding process to host the Olympics had altered on issues such as guarantees and security and that the United States had to adapt to those changes.
"We are looking less favourably toward 2016 bidding at this moment," Ueberroth told a media summit for the 2006 Winter Olympics in Turin, Italy. "We have not ruled it out.
"The rules are changing a bit and we need have a strong mayor and a strong city with a strong governor, with strong senators and congressional members.
"We need a federal government that understands that the game has changed for bidding cities."
Ueberroth said the USOC would decide within the next six months whether to bid.
"We don't want to enter and not win," Ueberroth said. "We don't want cities spending an awful lot of money and not have a full chance to be victorious."
"The thing that is going to be most important is that there is a federal, state, private-sector, city coordinated effort before anybody gets out of the blocks," he added.
"I'm not saying we won't bid. I'm saying we want to be very careful, understand it all before we start spending money and getting enthusiastic and competing against each other. We have to be smart."
Ueberroth praised the efforts of French President Jacques Chirac and British Prime Minister Tony Blair to land the 2012 Games.
Both leaders lobbied hard before London was awarded the Games in July following a close vote in Singapore. New York failed to get past the second round.
"We learned a little from watching Jacques Chirac and watching Tony Blair walking the halls of Singapore," Ueberroth said. "If we want to compete, we're going to be smart."
Los Angeles, which hosted the 1984 Games, has expressed an interest in hosting the 2016 Olympics. Several other U.S. cities are also believed to be interested.
The International Olympic Committee will make its decision in 2009.
"We want to bid," Ueberroth said. "But if we're going ragtag we're not going to win."
