The campground at Cabot Park will stay in provincial hands this summer.
The P.E.I. government had originally planned to lease out the campgrounds at Cabot Park and Green Park to private owners.
The Green Park agreement has already been finalized but the Cabot Park deal has not.
Tourism P.E.I. officials said an operator was identified to lease the Cabot Park campground but the two sides weren't able to reach a final agreement for this summer.
The deal is expected to be finalized for next year.
At the beginning of May, Tourism Minister Rob Henderson announced fees at provincial campgrounds would rise by $2 to cover increasing costs of services and staffing.