The Intercontinental Rally Challenge has dropped the Rally Madeira from its schedules for both 2011 and 2012.
The Portuguese island event had been part of the IRC calendar since the series' inception in 2006, but Geraldine Filiol, managing director of IRC organizer Eurosport Events, said contractual problems had forced the decision.
"The organizers of Rali Vinho Madeira have informed us recently that they would no longer be able to honor the terms of their contract with Eurosport Events, notably part of their funding obligations," she said.
"This has created a number of logistical and operational difficulties and is not what we would have expected from an event promoter. As a result we have decided to remove the rally from our calendar for this year and 2012 when our existing agreement was due to expire.
"All teams, manufacturers, partners and suppliers were informed as soon as the situation had become clear in an effort to prevent any unnecessary expenditure. They understand and support our decision."
The Rally Madeira will not be replaced, meaning the 2011 IRC schedule will drop to 11 rounds. The planned Alerces Rally in Argentina earlier this season was also canceled, but was replaced with the Rally Canarias.