Attempts to reinstate the Canadian Grand Prix on next year's calendar have all but failed, after Montreal officials cited 'unreasonable' demands being placed on them.
In a media statement issued on Sunday night in Canada, senior political representatives said there was no way the city could find the vast sums of money that Formula One supremo Bernie Ecclestone was demanding for the race to take place.
Montreal mayor Gerald Tremblay said: "We were constantly guided in our negotiations by principles of responsible management. However, despite our endeavours and those of the business community, the unreasonable demands of Formula One exceeded the taxpayer's ability to pay.
"I would like to thank my colleagues from the federal and provincial governments and members of the business community who joined forces in an attempt to save the grand prix.
"Their concerted efforts attest to Montreal's vitality and could prove an opportunity for creating a development fund for new events of all kinds that would stimulate the economy, tourism and employment."
Raymond Bachand, the minister of tourism, added: "Whenever the Grand Prix of Canada needed help from the Government of Quebec, we were there.
"We worked very hard over the past few weeks to ensure there would be a grand prix in Montreal, while staying fiscally responsible. We cannot meet Mr. Ecclestone's unworkable demands.
"Unless he eases his requirements and adopts a different approach, there will be no grand prix in Montreal in 2009."
Montreal officials revealed that they were only told for the first time that the race had been dropped from the 2009 schedule on October 7.
This prompted actions from all levels of government, which included a visit to see Ecclestone in London on October 23.
Five days later, the representatives received a final contract offer from Ecclestone demanding a government or bank guarantee of $143 million (USD) over five years - a fee too high for any promoter to take on.
The government considered setting up a non-profit organisation to try and move discussions forward, with a new contract proposal being sent to Ecclestone, but he has refused to revise his original proposal.
Figures revealed that the race fees demanded for Ecclestone were almost $26 million for 2009, raising by five per cent each year after that.
Details of correspondence between Montreal officials and Ecclestone has been published here.