The British Grand Prix will not be included on the provisional calendar for the 2005 season.
British Racing Drivers' Club president Jackie Stewart said on Thursday that he had admitted defeat in his efforts to save the race.
Bernie Ecclestone had set a deadline of this Thursday to find a promoter for the race, even though the provisional 2005 calendar is not due to be finalised until the FIA World Council meets on October 13.
The BRDC, who own Silverstone, had made an offer to Ecclestone to promote the race themselves. But it was understood to have fallen around £2million short of the F1 supremo's valuation.
They are not prepared to go any higher because doing so would mean running the event at a loss.
Stewart said: "We've gone as far as we can in making cutbacks in other areas to be able to afford the Grand Prix because we feel it is very important for the country as a whole.
"The gap between money being asked for (by Formula One) and what we can offer is comparatively small - in single figures of millions - but the amount is unaffordable.
"The British Racing Drivers Club cannot afford the British Grand Prix at any price."
The BRDC had been lobbying the government to step in and make up the shortfall between their offer and Ecclestone's asking price - but without success.
However, it is to be hoped that the news the race will almost certainly be axed could spur ministers into action.
The British-based F1 teams may also step in and do their best to save the race.