Octagon received $140,000 from Events Tasmania for the festivals in 2011 and 2012, which focused on the town's international racing heydays of 1953 to 1968.

In 2012 Octagon events general manager Mark Perry said the company would hold a biennial event, scheduled for March 22 and 23 this year, citing difficulties in attracting car collectors for an annual event.

However, Octagon Asia Pacific president Sean Nicholls yesterday confirmed the cancellation of this year's event but was unavailable to provide detailed information.

"The future of the event is being discussed and a decision will be made over the coming months," Mr Nicholls said.

Events Tasmania director Adam Sproule said the company was offered additional funding for a 2013 event.

"They were invited to reapply in 2013 for a possible 2014 event, but chose not to do so," Mr Sproule said.

"As with all events, especially those that positively impact regional areas, they are welcome to put in an application for support in the future."

He said the company found a period event would be best suited for the area, following a review of the 2011 and 2012 festivals.

The Longford Revival Festival attracted car collectors and motor sport enthusiasts from across Australia with the opportunity to race the area's famed Flying Mile.