"The financial situation of the investment company means that it is not possible to give (F1 chairman) Bernie Ecclestone the guarantees he requires for the finance of the race in 2004," said Marcel Charmant, the president of the Nievre regional authority.
The regional authority of Nievre is the majority shareholder in the company which owns the Magny-Cours circuit.
Reports in Britain suggested that Charmant's group still owed $10 million in unpaid fees to F1.
The race was included on the 2004 calendar when the World Council met in October, but was only listed as provisional. The July 11 date was published "subject to conclusion of a contract."