Hockenheim boss Georg Seiler says there will be no Formula One race at the circuit in 2015.
It leaves F1 facing a season without the German Grand Prix for just the second time in the last 50 years, with major doubts over the Nurburgring's ability to stage the race.
F1 supremo Bernie Ecclestone revealed at last weekend's curtain-raiser in Australia that Nurburgring officials were unwilling to pay the fee required to host the event, but any chance of the race switching to Germany's other premier track has been quashed.
Seiler told Bild: "We have no more hope that the Formula 1 race takes place here. We did everything we could in the last few years to make the fans happy.
"Time has run out to organise the race here. Otherwise, [there was a risk that] the quality of the event would have suffered."
If an agreement with Nurburgring chiefs cannot be reached, the F1 calendar will fall back to 19 races, with the addition of Mexico for 2015 having originally boosted it to 20.