Isle of Wight Radio can confirm a popular event at Cowes Week has been scrapped for three years.
Media reports on Sunday suggested the Extreme 40 yacht racing had been moved to Cardiff for 2012.
Organisers have now confirmed to Isle of Wight Radio the move is a three year deal and will last until at least 2014.
The Extreme Sailing Series has been staged during Cowes Week with the support of the Isle of Wight Council and Cowes Week Ltd, entertaining thousands of spectators along The Esplanade shoreline since 2007.
"We've had some great events in Cowes over the last five years and we’ve made significant investment as organisers to be there, but we just couldn't afford to continue to subsidise it as a venue in 2012,” said Mark Turner, Executive chairman of the organising company behind the series, OC ThirdPole.
Mark told Isle of Wight Radio, "By 2011 our surveys indicated that there were many people travelling to Cowes specifically to watch the Extreme Sailing Series and we appreciated their support."
"Whilst Cowes Week Ltd have accommodated us as best as they could both operationally and politically, we've never actually received a formal bid to host the event in Cowes."
Last month organisers of Cowes Week announced the famous fireworks display won't be funded either.
Critics are now questioning the impact the two announcements will have on the image of the famous regatta.
However CEO of Cowes Week Ltd Stuart Quarrie told Isle of Wight Radio there's nothing to worry about.
Stuart said, "We as Cowes Week Ltd don't need them, they're very nice and great for spectators. I understand you lose a little bit of the excitement of the fast boats coming into shore and capsizing and so on but you gain back the real excitement of the big fleets running close inshore along by the green in Cowes."
Report by Michael Coombes
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