Supercars has pulled the plug on next year's Newcastle 500 after the NSW government failed to break an impasse with Newcastle council.
Supercars chief executive Shane Howard called Newcastle lord mayor Nuatali Nelmes this week to say that the motor racing organisation was moving ahead with a back-up plan to hold the first event of the year in Bathurst.
Cr Nelmes and Supercars confirmed to the Newcastle Herald on Thursday that Mr Howard had made the call and the event was off.
It is not clear whether the race will return in later years.
Asked on ABC radio about the race's long-term future, Cr Nelmes said: "At this point in time, there is no agreement with the NSW government and the local state MPs that represent all of us here in Newcastle in this region, in the state parliament.
"They would have to have some agreement before we would even look at anything in the future.
"Tim has come out quite clearly not supporting the event [following] the consultation that we have done in his particular area, and we absolutely respect ... his decision.
"And there is no way we'll be going ahead with an event of that size and scale when your local state representatives don't support it."
The cancellation follows weeks of public wrangling between the council and government over the race's future.
The race appeared headed for the scrap heap after community consultation this year revealed significant opposition to a five-year extension.
The government proposed a one-year deal for 2024 while it worked on a new five-year contract, but the council rejected this option because it did not align with the consultation.
On Wednesday, Premier Chris Minns blasted the council's resistance to a one-year deal as "nonsensical".
"Look, we want Supercars in Newcastle, and we've commenced discussions about a multi-year deal with that organisation," he said.
"They're happy with that, and, really, I think it's time for the council to make a decision about it.
"I mean, I figured they've [Newcastle] got a unique event on the foreshore in Newcastle [and] it's hugely popular.
"We're committed to funding and have provided funding for this year, and we've commenced negotiations for a multi-year deal with Supercars.
"If the council doesn't want to go ahead with it, they're going have to own that decision and announce it publicly."
Newcastle MP Tim Crakanthorp said at the height of the public dispute that he did not support the race returning for one or five years after the community consultation showed 59 per cent of 11,000 survey respondents opposed it.
The race started in Newcastle in 2017, drawing large crowds while attracting criticism for a nine-week bump-in and bump-out period which closed streets and affected access to parking, houses, businesses, beaches and parks.
Newcastle East Residents Group, which fought a long campaign against the street race, welcomed the cancellation.
"I'm terribly relieved we're getting rid of it. What a relief," spokesperson Christine Everingham said.
"There's no way they're coming back. I don't think there's any chance at all."
Dr Everingham said the race's demise had become a "blame game" between the government and council.
"No one really wants it, least of all us," she said.
"I was concerned about some of the elderly people here. The problems they had getting their support services in, getting to hospital, the worry they had.
"It was awful, and the contempt. Neither the government nor our council gave them any consideration whatsoever.
"Two thousand people inside a race circuit. People not being able to get to work."