The Canadian Grand Prix looks set to lose its place in next year's Formula One calendar after talks between Formula One chief Bernie Ecclestone and local official failed, Reuters reported.

Canadians put the blame on Ecclestone and his “unreasonable demands” Reuters said. The talks were aimed at persuading Ecclestone to put the Canadian GP back on Formula One 2009 calendar after he took it out earlier this year. Canadian business has claimed that the absence of the Montreal race would be extremely negative for the local economy and joint effort in raising money and support for having one nest year.

Montreal mayor Gerald Tremblay said in a statement published on the city's website that the unreasonable demands of Formula One exceeded the taxpayer's ability to pay. Ecclestone's last offer was for a promoter to put up a government or bank guarantee of $175 million over the next five years.

This, according to Tremblay, was very unlikely to happen since no private promoter was willing to take on such a level of risk, considering the limited revenue generated by the event Reuters said.

Quebec economic development minister Raymond Bachand called Ecclestone's demands “unworkable” and noted that unless he eased his requirements and put forward a different approach, there would be no Grand Prix in Montreal in 2009, leaving North America without a grand prix for the first time in 50 years.

Canadian public works minister Christian Paradis was quoted as saying that the race was a loss for all Canadians but Ecclestone had made “unrealistic demands”.

“As I recently said; 'yes to a Grand Prix, but not at any price,” he added.

As Reuters said, the decision to drop Canada, with the US Grand Prix at Indianapolis also canceled this year, has dismayed Formula One teams by cutting off a prime market for their manufacturer owners and sponsors.