Carlos Andrade Garin, the head of Guadalajara 2011, has admitted that 399 million pesos (£19 million/$30 million/€24 million) is still owed to several firms involved in the Games.

Governor-elect of Jalisco Province Aristotle Jorge Sandoval has warned that he will not provide the necessary financial guarantees needed to underwrite Guadalajara's bid for the 2018 Youth Olympics while the dispute is ongoing. 

"If we have failed to repay this debt how can we go forward with another commitment, asking for even more resources?" said Sandoval, who was the Mayor of Guardalajara during last year's event and was vice-president of the Organising Committee. 

Withdrawing would be a blow to Guadalajara, whose hosting of the Pan American Games, was widely praised. 

The cities campaigning for 2018 are required to submit their bid books to the International Olympic Committee (IOC) by October and they will expect it to include the financial guarantees.

It would be an embarrassment to Guadalajara if they withdrew having done the same thing on the eve of the vote for the 2014 Youth Olympics. 

Then they withdrew following a poor evaluation report by the IOC.

The Games were eventually awarded to Nanjing. 

The race for the 2018 Summer Youth Olympics is set to be the most competitive in the event's short history with the IOC also receiving bids from Buenos Aires, Glasgow, Medellín, Poznan and Rotterdam.

A winner is due to be announced in June 2013.

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