The Mexican National Physical Culture and Sport Commission (CONADE) made the announcement today, attributing it to a decision by the Mexican Government to "adjust" public spending by a total of MNP124.3 billion (£5.4 billion/$8.4 billion/€7.3 billion).

"Faced with such a situation, CONADE announces it is declining to organise the 2017 World Aquatics Championships in the city of Guadalajara, Jalisco," it said.

It has informed the International Swimming Federation (FINA) accordingly.

The move comes just eight days after the Canadian city of Edmonton withdrew its bid to host the 2022 Commonwealth Games because of economic problems caused by the drop in worldwide oil prices.

Many big oil-producing nations have committed to staging major international sports competitions in coming years.

Concerns are now likely to mount that other events too may be coming under intense scrutiny in light of the dramatic and unexpected fall in the value of what is one of the world's staple commodities.

FINA executive director Cornel Marculescu said the body had seen CONADE's annouuncement, "which surprised us, as the benefit of organising the FINA World Championships is much higher than the cost of running the event".

He said FINA would provide more information "shortly on the next steps concerning the organisation of the 2017 FINA World Championships".

Scotiabank Aquatics Center built for the 2011 Pan American Games staged in Guadalajara was due to stage the 2017 World Aquatics Championships until Mexico's withdrawal
©Getty Images

This year's World Championships are set to be held in Russia, another oil-producing nation, in the city of Kazan between 24 July and 9 August.

CONADE said that Mexico had so far spent $9.5 million (£6 million/€8.5 billion) of the $100 million (£65 million/€88 million) cost of organising the 2017 event.

It acknowledged that in accordance with the contract signed with FINA in 2011 when they had been awarded the Championships, it will also have to pay a $5 million (£3 million/€4.5 million) penalty to avoid sanctions by the governing body.

Jesús Mena Campos, CONADE's director general, said he had already had the opportunity to talk to Julio Cesar Maglione, FINA's President, who "laments this situation, but understands the circumstances and reiterates his support and backing for aquatics activities in our country".

Guadalajara was in the international spotlight in 2011 when it hosted the Pan American Games, with the swimming competition staged at the Scotiabank Aquatics Center and open water events in Puerto Vallarta.