Next year's French Grand Prix, due to take place at the Magny-Cours circuit in July, has been cancelled because of financial problems, according to a local government official.
Marcel Charmant, president of the local council in the Nievre region, said the company running Magny-Cours could not give Formula One boss Bernie Ecclestone the guarantees he required ahead of the race.
In an interview with the local newspaper Journal du Centre appearing on Saturday, Charmant says the 2003 Grand Prix made a loss for the second year running.
According to the L'Equipe website, the department in central France which contains Magny-Cours will be asked next month to stump up €4.5 million to cover the 2003 deficit.
The cancellation of the July 11th event should be officially announced in the next few days by the sport's governing body, the FIA, according to the website.
When FIA published their 2004 calendar in September, the Magny-Cours race was said to be "subject to contract".