The city may be close to announcing that the Edmonton Indy is cancelled. CTV News has learned that negotiations between the city and Octane Racing have broken down.

Confidential documents reveal it would cost an additional $2.7 million to keep the race operational. At this point, the city and Octane Racing officials have wrapped up talks behind closed doors.

A confidential document obtained by CTV News states: "We can not reach an agreement within the mandate provided by Council."

It also states: "It is not the intent of City Administration to bring this back to Council for a review of the mandate..."

And, "Negotiation between the City and Octane have ended without an agreement being reached."

Last July, the president of Octane Racing Group said the organization would take over the reigns of the Edmonton Indy from Northlands.

At that time, Francois Dumontier told media he believed his group's expertise would steer the Edmonton Indy in the right direction.

Octane now says it is working on statement, which will possibility released by Wednesday.

"It is possible then the statement that we will make will have a different tender then the one the city will probably make if they have a conference," said Octane spokesperson Norman Prieur.

New documents show there were two options to keep the race going. Octane preferred option one, which saw the race staying on the original course at the City Centre Airport on Runway 12-30. But that option is not viable because it would involve a complete closure of the airport, including medivac service, while the race event was underway.

The second option, which the city preferred, moved the course to the now closed runway 16-34. The initial cost estimated new asphalt and improvements to be $1 million, and now that cost is projected to be $3.2 million.

The city did agree to pay Octane $5.5 million over the course of the next three years, but now there has been additional cost. It was originally estimated keeping partial infrastructure in place such as grandstands and hospitality areas would save just about $1 million. And now that savings is projected to be between only three to four hundred thousand dollars.

According to the city, Octane has declined taking on the additional cost, which now leaves Edmonton on the hook for an estimated $2.65 million more.

According to the city document, a news conference could be held as early as Wednesday morning.

The last time this was before council a mandate was put down that has not been reached. City Councillor Kim Krushell says this issue will not go back before council.

With files from Kevin Armstrong