The capital of the north-eastern state of Nuevo León has twice been in the frame for the event - but was overlooked by the Mexican Olympic Committee (COM) for Guadalajara in both the 2014 and 2018 races.

Now, officials have ruled out a 2023 bid voluntarily, although Jose Antonio Hernandez Griego, the President of the Monterrey City Olympic Foundation, insisted that the desire to host the Games at some stage remained strong.

He said that financial concerns in Mexico had played a part in the decision, while a political row involving COM may also have been key.

"Monterrey is clear on its vocation as an Olympic city and reaffirms its commitment to channel all efforts to achieve an Olympic host fair in the future," said Griego.

"However, we believe that the current situation in the country, the national sport and the economy in the region, make it impossible to continue our intention to run for the fourth Youth Olympic Games in 2023.

"Insisting on this application, before all that happens, it would be irresponsible and would endanger the reputation of the capital of Nuevo León to host international events.

"That is why, in Monterrey City Olympic Foundation, we announce that we decline our immediate intention to seek the seat of the Youth Olympic Games and from this moment, the hand of Government, business, academia and organised civil society, initiate a process of reflection and consultation to discuss at what point will be a conducive return to the Olympic race.

"We thank all those who have expressed their sympathy and solidarity with our project and invite them to continue to insist on this idea for a meet again in a new future Olympic bid."

The COM dispute involved the country's Government, with the National Commission of Physical Culture and Sports (CONADE) clashing with Federations it accused of misusing public money.

An agreement was eventually reached to end hostility, but the International Olympic Committee - which has strict rules against Government interference - were keen observers of the situation.

Mexico has a proud Olympic heritage after hosting the 1968 Summer Games in Mexico City, but Guadalajara lost out both times in its attempts to secure the Youth equivalent.

The 2011 Pan American Games host withdrew its bid for 2014 before the IOC vote due to a poor evaluation report, with Chinese city Nanjing eventually getting the nod.

Guadalajara was then a non-selected applicant city in the 2018 race, eventually won by Argentinian capital Buenos Aires.

The fourth edition of the Games have been moved back a year to 2023 as the IOC have opted to hold them in a non-Olympic year, with the Winter Games in Beijing scheduled for 2022.