Malaysian world number one Nicol David said she was disappointed squash had failed to make it into the 2020 Olympics but said the sport's bid for inclusion in the Games had raised its profile.

The International Olympic Committee (IOC) on Sunday restored wrestling as an Olympic sport, leaving other short-listers squash and baseball/softball on the sidelines for the 2020 Games, which will be hosted by Tokyo.

"It's disappointing that squash missed out today but our @Vote4Squash campaign has brought the squash world closer and stronger in every way," David said on her Facebook page.

"(We've) proven we can be up there as an Olympic sport because we were shortlisted," she said separately in a video uploaded to YouTube following the IOC decision.

Malaysia's most dominant athlete, David, 30, has ruled women's squash.

She has held the top rank for seven straight years, won a record seven world titles, and would be a solid bet to bring home her country's first-ever Olympic gold medal in any sport.

She has been a passionate advocate for its inclusion in the Games but the failure to gain admission in 2020 likely dashes her gold-medal hopes.

"They know we are good and we just have to use this and make the most of where we've come," said David.

"We've got everything pretty much set and that's why we knew this was our chance to be in the Games."

She did not say whether she planned to continue fighting for Olympic squash and was not immediately available for comment.

Squash has repeatedly attempted to join the Olympics over the past decade. It topped a vote of Games aspirants in 2005 but failed to get a required two-thirds of the ballots.

"Today's decision is heartbreaking for the millions of squash players around the world, particularly given the 10-year journey we have been on to join the Olympic Games Sports Programme," said squash federation president Narayana Ramachandran.

He had earlier said that squash would try again for inclusion in future Games.