Istanbul's Grand Prix will not take place in 2012, Turkish media reported on Friday.
The reports said there have been disagreements about payments between race officials and F1 chief executive Bernie Ecclestone.
The Hurriyet daily quoted Istanbul Chamber of Commerce chief Murat Yalcintas as saying officials had rejected Ecclestone's bid to double the race fee to $26 million.
"Formula One says goodbye to Istanbul," read the headline in the Haberturk newspaper.
Turkey's F1 problems do not mean the sport will never return to Istanbul.
That was the message on Friday of Chamber of Commerce head Murat Yalcintas, following reports that Bernie Ecclestone's doubling of the sanctioning fee for 2012 made a new deal unlikely.
Ecclestone said recently that he regarded Turkey's place on the F1 calendar as secure.
"It's an enormous market in Turkey. Eventually they will get themselves sorted out," said the Briton, responding to complaints about low attendance at the otherwise impressive facility.
The 2012 race is now in doubt but Yalcintas hinted that the latest reports merely foreshadow complex talks with Ecclestone at next month's event.
"Nothing is certain yet. Besides, if there is no agreement for next year, this does not mean that there will no longer be F1 in Istanbul. There could be agreements in the future," added Yalcintas.