Derry City Council's General Manager for Leisure has said the body which funds sport here, Sport NI, has rejected a grant application to carry out safety work at Brandywell stadium.
The council had asked for around £1.1million for repairs at the Derry venue.
Sport NI have yet to comment on the matter.
General Manager, Jeff Ashe, said the council now has to source the money elsewhere.
"We'd an application in with Sports NI which would have allowed us to do immediate general safety and comfort repairs to Brandywell stadium," he said.
"Unfortunately we learned just after the new year that the money has been frozen for the next two to three years.
"That puts pressure back on the council to find funding."