Canadian officials have failed to reach a deal to reinstate Montreal's Grand Prix to the 2009 Formula One schedule.
The race was dropped from the calendar for next season following a commercial dispute over the 2008 Canadian GP.
It means no North American races in 2009, with the United States Grand Prix at Indianapolis already dropped.
A statement on the City of Montreal's website claimed Formula One had made "unreasonable demands" in a final contract proposal on 28 October.
The statement said that offer called for an eventual promoter to put up a government or bank guarantee of some £96.3m over the next five years.
It said no private promoter was willing to take on such a level of risk, considering the limited revenue generated by the event.
Montreal Mayor Gerald Tremblay said: "Despite our endeavours, the unreasonable demands of Formula One exceeded the taxpayer's ability to pay."
The decision to drop Canada, along with the US Grand Prix, dismayed Formula One teams by cutting off a major market for their car-manufacturer owners and sponsors.
