Cundy Sports Marketing announced on its website that ''we must reluctantly accept that with only four weeks to go we are unable to proceed in 2010''.

They emailed paid entrants yesterday, saying, ''Notwithstanding that the event will not be held due to the actions of others, the goodwill shown by you in entering deserves to be reciprocated. All entry fees, merchandise ... will be refunded in full''.

Cundy and the ACT Cross Country Club have been involved in a protracted dispute over race ownership, which led the ACT Government to refuse road closure permission for the April 11 race.

It appeared last week that there was some hope for this year's race when Cundy and the club confirmed they had reached an agreement to settle the matter out of court.

However, the parties failed to sign off on the deal.

As has been the case throughout the saga, each blamed the other.

ACT Cross Country Club president Doug Limbrick said the deal fell through when Cundy tried to alter the terms of the agreement, which would have let Cundy stage this year's race but force them to drop their legal action.

However Cundy Sports Management director Dave Cundy said it was the club that was to blame for ''inordinate delays'' in signing paperwork since the initial agreement on March 1.

Having abandoned the prospect of settlement, Cundy lodged evidence with the Federal Court late last week and said on its website ''the matter will now be settled in court''.

For more on this story, see the print edition of today's Canberra Times.