The International Laser Class Association (ILCA) is looking for a new company to manufacture the Olympic boat after stripping an existing partner of its rights as an approved builder.
According to the ILCA, British-based Laser Performance Europe (LPE) "breached the terms" of the laser construction manual agreement.
This agreement aims to ensure all laser boats are identical, regardless of where they are built.
According to the ILCA, LPE refused to allow inspection of the boats they were building as required in their contract.
Two other companies – one in Australia and one in Japan – are continuing as approved builders.
"We're disappointed to see such a long and productive relationship come to an end, but we had to move ahead in order to protect the level of competition and the investment for the 14,000 members of the international laser class and more than 50,000 sailors around the world who regularly sail the laser dinghy," said ILCA President Tracy Usher.
"The very heart of our class is the ability for any sailor to race any other on an equal playing field and the only way we can guarantee that level of parity is by ensuring all builders are producing the boat in strict accordance with the laser construction manual.
"It's the same for every class of one-design racing boat.
"If we can’t be sure that they are all the same, we have no class left."
Chris Caldecoat, general manager of Performance Sailcraft Australia, has said his company could take up the slack if needed.
Performance Sailcraft Japan will supply the boats for the Tokyo 2020 Olympic competition.
"We're confident we’ll see new builders coming online soon and that we'll once again have a robust dealer network around the world in plenty of time for the lead up to the 2024 Olympics," said ILCA executive secretary Eric Faust.
Australia's Tom Burton won the men's laser title at the Rio 2016 Olympics.
Marit Bouwmeester of the Netherlands won the women's laser radial crown.
insidethegames has contacted LPE for comment.