Donington on Friday confirmed that an investment loans scheme to fund circuit redevelopment ahead of the 2010 British grand prix has failed.
The news means that the Leicestershire venue's contract to become Britain's new formula one host is now technically void.
"Information regarding the circuit's future plans is not yet available," read a media statement.
F1 chief executive Bernie Ecclestone is likely to now immediately ramp up talks with Silverstone about holding the race there in 2010.
The Northamptonshire venue wants more than a single-year deal, and 78-year-old Ecclestone has indicated that the same 17-year contract will be offered to Silverstone.
