Oberstdorf Town Council has failed to reach a majority to approve a new stadium for the International Ski Federation (FIS) Nordic World Championships in 2021.
The German resort is due to host the flagship event for cross-country skiing, ski jumping and Nordic combined in three years time.
A new facility for the cross-country elements was proposed but a vote between councillors ended as a 10-10 draw.
Costs was thought to be the main factor for those voting against.
It means that no decision has yet been reached on whether a new venue will be constructed for the Championships or if existing facilities will be improved.
Oberstdorf were awarded the Championships at the FIS Congress in Cancun in Mexico in June 2016.
The German town won with 11 votes against its competitors - Norwegian city Trondheim, which got four, and Slovenian entry Planica, which gained two.
Oberstdorf has previously staged the Championships in 1987 and 2005.
As part of the first phase of planning, organisers attended the 2017 FIS Nordic World Ski Championships in Finnish city Lahti and the official debrief from the Organising Committee.
They will also hope to gain knowledge from 2019 hosts Seefeld in Austria.
Coordination Group meetings held by the FIS are also already underway.