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The Malaysian round of the 2016 Australian V8 Supercars Championship will be cancelled, according to a report by Fox Sports Australia. The race series was previously scheduled to take place on the streets of Kuala Lumpur from August 12 to 14 as part of the KL City 400 Supercar Extravaganza.

The event was supposed to be a follow up to last year’s inaugural KL City Grand Prix, which saw a successful five-car exhibition race by V8 Supercars. However, an ongoing legal dispute between the event’s initial organiser, GT Global, with new organiser, City Motorsports in March, has resulted in the race series pulling the plug on the Malaysian round for 2016.

In a report by The Malay Mail, sources say that the new promoters (City Motorsports) had only met KL City Hall (DBKL) once earlier this year, with no other meetings since. “As far as City Hall is concerned, there is no street race in August,” the insider said. Additionally, Sports Commissioner Datuk Zaiton Othman confirmed that the organisers had not submitted an application to host the event. This could see the event being scrapped entirely.

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Australian V8 Supercars chief James Warburton said in a statement, “we have been formally advised by the Malaysian promoter that due to ongoing legal action in Malaysia, to which we are not a party, there is insufficient time to prepare the street circuit in Kuala Lumpur for the event on August 12-14. The event has therefore been cancelled.”

However, Warburton has not given up on the race taking place in Malaysia next year. “We have a four year agreement to race in Malaysia until the end of 2019 and we look forward to returning to Kuala Lumpur when all the local legal issues have been resolved. We believe this event on the streets of KL will be one not to be missed,” he said.

The inaugural KL City Grand Prix came with its share of problems. Aside from failing to obtain a licence to host the event initially, safety structures placed along several main roads in the city resulted in disgruntled pedestrians, motorists and those working and living in the area, who bemoaned about the inconvenience caused by the street circuit.

GALLERY: 2015 KL City Grand Prix highlights