Aberdeen councillors are being advised to abandon any attempt to host the Tall Ships race in 2022.
Earlier this year it was agreed the council would set aside £2m over four years for a bid to attract the event to the city.
However, the Harbour Board has said it could not back the move on a number of grounds, including an interruption to business.
Councillors will be asked next week to agree the bid is not viable.
A future bid could be considered, possibly to coincide with a further campaign to become City of Culture.
Aberdeen last hosted a major Tall Ships event in 1997.