The NSW government and Supercars are no closer to resolving their impasse with Newcastle council over the city's touring car race, despite two weeks of intense lobbying.
Sports Minister Stephen Kamper discussed the future of the Newcastle 500 with Supercars executives at the Bathurst 1000 last weekend, but the government has not shifted City of Newcastle's opposition to a one-year race extension.
Supercars is examining whether it can replace the Newcastle 500 as the season-opener next year with an event on the same weekend as the Bathurst 12 Hour race.
The motor racing company said it was continuing discussions with the government about the Newcastle 500 but has acknowledged privately that without council support the race is dead.
A source said "of course" Supercars wanted to return to Newcastle, but a hard deadline was approaching with no resolution in sight.
The source said negotiations were "not moving forward", two weeks after the government said the race's future was "firmly in the hands" of Newcastle council.
The council administration has said it will not ask councillors to vote on the proposed one-year race extension because community consultation this year focused on what was expected to be a five-year deal.
The government says it is not ready to fund a five-year Newcastle deal with Supercars, believed to be worth about $40 million, but is working towards that outcome.
Asked about the progress of talks on Monday, a Supercars spokesperson said: "Discussions are ongoing with Newcastle City Council and we continue to work collaboratively to find a resolution regarding the long-term future of the event.
"Supercars and Destination NSW are aligned in their shared commitment to host the opening event of 2024 in Newcastle."
Well placed sources have told the Newcastle Herald that state cabinet's Expenditure Review Committee, headed by Treasurer Daniel Mookhey, months ago rejected a request to fund the event for five years.
Newcastle Labor MP Tim Crakanthorp has publicly opposed Supercars returning for one or five years after the council's community survey showed 59 per cent of 11,000 respondents were against it.
Labor sources told the Herald that Newcastle branch members, many of them opposed to the race, were keeping a close eye on the issue in the lead-up to preselections for next year's council elections.