Canada's Paul Tracy powers to a sixth-place finish at the Edmonton Indy race in July.

The Edmonton Indy will not take place in 2011, making it doubtful the race will ever return, a senior city official confirmed Tuesday night.

Lorna Rosen, Edmonton's chief financial officer, confirmed city officials were unable to reach an agreement with promotion company Octane Management.

As a result, the 2011 race is cancelled, with Octane expected to move it to another city — which means it will likely never come back to Edmonton, Rosen said.

In July, city council gave official permission for staff to start talks on a three-year contract with Octane, which is also the promoter of the Montreal Grand Prix F1 race.

The city was willing to subsidize the Indy race with $5.5 million over three years but no more. Rosen confirmed the negotiations stalled over additional costs, which according to media reports would have required the city to pay a further $2.7 million.

That extra amount includes the price of paving a new track at the City Centre Airport. One of the airport's runways closed over the summer.

Edmonton Coun. Kim Krushell said earlier she couldn't support the city's continued role in supporting the race, especially now that its initial three-year involvement is complete.

"We're off the hook now going forward," she said.

Community-based organization Northlands ran the Indy at Edmonton City Centre Airport for the last three years in a deal that had city taxpayers cover any financial losses. The race lost $9.2 million in the first two years of that contract. The costs of the 2010 race have not yet been announced.

The city will hold a news conference Wednesday morning to formally announce that the race is over.

With files from the CBC's Alicia Asquith