Calgary Mayor Naheed Nenshi has threatened to cancel the city's 2026 Winter Olympic bid unless a funding agreement has been reached by tomorrow (October 29).
The Calgary Herald reported that the Mayor wrote to Canadian Prime Minister Justin Trudeau claiming a agreement must be reached.
"If we cannot come to a mutually agreeable conclusion by Monday, I deeply regret that I will have no choice but to request that Calgary City Council cancel the plebiscite and thus terminate the bid; an event none of us want," Nenshi reportedly wrote.
"It is clear there has been a tremendous misunderstanding of the nature of the required funding amongst the three Government partners and now we are in a position where we cannot show citizens how the required public contribution could be met."
Nenshi claimed he had informed Prime Minister Trudeau at the start of negotiations that a "dollar matching plan" would not be possible and would result in the end of the bid.
It is claimed discussions began between the three Government parties at Pyeongchang 2018.
The dollar matching plan has been typical of major international events held in Canada.
This has been used for the Vancouver 2010 Winter Olympics and the 2015 Pan American Games in Toronto.
Under the policy the Federal Government provide 50 per cent of funding for events.
A leaked report claimed that the Federal Government would provide up to CAD$1.75 billion (£1 billion/$1.3 million/€1.1 million) in funding for Calgary 2026.
It is believed the City of Calgary and the Provincial Government of Alberta would need to pledge the same combined total as the Federal Government to receive the funding, however.
The Government of Alberta pledged CAD$700 million (£408 million/$537 million/€464 million) in funding should Calgary host the 2026 Winter Olympics and Paralympics earlier this month.
The City of Calgary, according to the letter, were expecting to commit CAD$370 million (£219 million/$281 million/€246 million).
With CAD$3 billion (£1.8 billion/$2.3 billion/€2 billion) required by Calgary 2026, the combined city, Provincial and Federal figure would be significantly short of the total required.
Nenshi reportedly suggested the policy requiring other Governments to match federal funds could be changed or costs on areas such as security and affordable housing could be recalculated.
The Government of Alberta have indicated they will not be prepared to change their contribution.
It had been suggested that the leaked Federal Government figures had been an attempt to encourage the Government of Alberta to increase their funding.
The Provincial Government's Finance Minister Joe Ceci has accused the Federal Government of "moving the goalposts".
"For the past number of weeks, along with the City of Calgary, we have been negotiating with the Federal Government in what we thought was good faith," Ceci said, according to the CBC.
"We came to our $700 million number based on a federal commitment of $1.75 billion in 2018 dollars, without any kind of 50/50 arrangement.
"Yesterday, we found out through the media that the Federal Government is moving the goalposts in the fourth quarter and negotiating through the media."
The Calgary 2026 bid now appears to be at a key stage, with the crucial funding negotiations currently taking the focus.
The next hurdle would be the plebiscite on November 13.
Should the vote go against Calgary 2026, the bid looks certain to end with backing from both Federal and Provincial Governments having been tied to a positive outcome.
Calgary is one of three candidates remaining in the race for the 2026 Winter Olympics, alongside a Milan and Cortina D'Ampezzo bid from Italy.
Stockholm also remain in the race, but the Swedish capital's hopes remain in the balance with no City Council backing in place.