The Donington Park circuit has broken off its partnership with Circuit of Wales to host the British round of the MotoGP championship this year.
Donington had agreed to host this year's event while work was carried out on Circuit of Wales ahead of its debut in the schedule in 2016.
The construction of the $450m circuit, however, has been delayed several times, the latest following a public inquiry into the venue.
Donington announced on Tuesday it had decided to break off its deal with Circuit of Wales, claiming the Welsh track had not met its part of the agreement.
"The Board of Directors and Staff of Donington Park Racing Limited are greatly disappointed to have to report today that the Circuit of Wales company, and its new subsidiary GP15 Limited, have as yet been unable to complete their agreement with DPRL, nor meet long-planned payment deadlines, in order to set in motion the operation of the 2015 British Motorcycle Grand Prix, MotoGP at Donington Park," said a statement.
"The situation at 10th February 2015 is very clear. Despite DPRL's best efforts, the time lost with CoW being unable to complete the funding arrangements has resulted in delays in almost all of the event's critically important operational plans, from track works to equipment hire.
"The position we are now in is of course frustrating and uncomfortable for all concerned."
"Therefore, in the judgment of the Board of DPRL, this current position could jeopardise the safe and successful running of the 2015 British MotoGP at Donington to such an extent, that both the commercial risks and the lack of time are now too great to allow Donington to proceed."
Fans to be refunded
Donington, which was scheduled to host the race on 28 August, said all fans who had already purchased tickets for the event will be refunded.
"The whole Donington team who have worked so hard here over the past six months to fulfil our part of the MotoGP planning are as disappointed as those many fans will be who wanted to see the event return to Donington Park," said Donington boss Christopher Tate.
"The position we are now in is of course frustrating and uncomfortable for all concerned.
"It is this week, way past any normal deadlines, when we - in partnership with CoW - would have been committing to major expenditures. CoW have made it clear to us that they are not now in a position to complete, so we have to withdraw and end the planned arrangement."