At a stakeholders meeting on Tuesday, it was decided that the city of Hockenheim will no longer host the German grand prix.
"We will not be the promoters any more," city mayor Dieter Gummer, ruing annual multi-million euro losses, is quoted as saying in the German press.
However, he was also quoted as leaving the door open to investors or a new promoter, and earlier this week it was rumoured that Hockenheim is open to the idea of FOTA's breakaway series.
Gummer said discussions with Bernie Ecclestone are taking place, and that the F1 chief executive has put into writing his desire for a solution to be found.
With Hockenheim alternating Germany's annual race with the Nurburgring, it is now possible that the country will not appear on the 2010 F1 calendar.