Canada is set to stage the World Cup for the first time as part of a co-hosting agreement with the United States and Mexico.

Montreal, Edmonton and Toronto have all been confirmed as the host cities in Canada.

But with the coronavirus pandemic hitting businesses and citizens hard, the Government of Quebec has decided against supporting Montreal’s bid and will instead focus its efforts on the province's economy recovery.

"We understand that the decision not to support the hosting of FIFA World Cup matches in 2026 may disappoint the City of Montreal and soccer fans," said Quebec tourism minister Caroline Proulx in a report by The Canadian Press.

"We would have been happy and ready to support the hosting of the FIFA World Cup in Montreal, but the apprehended cost explosion of the event was becoming difficult for us to justify to Quebec taxpayers."

Proulx claimed the estimated costs for the Government of Quebec have risen CAN$50 million (£28.6 million/$38.9 million/€32.4 million) to $103 million (£58.8 million/$80.2 million/€66.7 million) in less than three years.

"In the current context, we consider that the priority remains to support Quebecers and businesses in times of pandemic and towards economic recovery,” said Proulx.

"That said, let's be very clear.

"We continue to support the City of Montreal, in particular through investments specifically dedicated to tourism revival and by staying on the lookout for major events that will be win-wins for all parties."

According to The Canadian Press, the Government of Quebec sent a letter to the City of Montreal to confirm that it would be withdrawing financial support.

The decision is expected to be a hammer blow to Montreal’s plans to be among the 16 host cities for the 2026 World Cup.

There is currently a list of 24 potential venues as part of United 2026 but this will need to be cut to 16 by the final quarter of this year.

Youssef Amane, the director of communications for the Executive Committee of the City of Montreal, insisted staging the 2026 World Cup would be "a formidable engine of economic and tourist recovery for Montreal".

"The city has applied to host matches for the 2026 FIFA World Cup after obtaining written commitments from its Government partners for equitable cost sharing," Amane told The Canadian Press.  

"The withdrawal of the financial participation of the Government of cost-sharing therefore jeopardises the Montreal candidacy - the only French-speaking city in the running.

"The city will take the time to study the legal, economic and sporting implications of such a withdrawal and to discuss with its partners, both from the two levels of Government and its sporting partners, on the options available to her for the next step."

The tournament, which will be hosted across the three North American countries, will be the first 48-team FIFA World Cup in history.

Canada, Mexico, and the US were chosen to host the FIFA World Cup 2026 on June 13 2018 during the 68th FIFA Congress in Moscow.

The joint bid beat its only rival Morocco by 134 votes to 65.