The contract to stage the race expires in 2010, and although it was suggested last week a new deal was due to be signed through to 2015, there is opposition.
The mayor of the City of Port Philip, the Melbourne council that hosts the race, is urging the the Victorian government to scrap the event.
"After 14 years, residents have had more than enough," said Councillor Janet Cribbes.
"Why should they have to suffer the noise and the inconvenience of a car race in a park for a race whose public price tag blew out to $41.3million (£19.94million) last year?"
It is understood the cost of hosting the race has soared, with losses being made despite the city receiving considerable exposure.
Adding to her attack, Coun. Cribbes stated: "It's simply not fair that this event is exempt from the normal legislative protections empowering Victoria Police and the Environmental Protection Authority to take action on noise and other infringements on residential amenity.
"The race does not benefit Victoria as a whole. It simply doesn't stack up on economic, social or environmental grounds."