The Urban Downhill Cycle race was scheduled to bring thousands of tourists from across the country on May 7th next.
A huge amount of work had gone into the event including an impressive presentation to the local town council which had fully backed the plan.
The event was the first of its kind to be staged in Ireland and riders were planning to come from as far away as Sweden for the event.
However the organisers, the Donegal Mountain Bike Club, were forced to pull the event.
Now local councillor Jimmy Kavanagh is asking the council to examine ways of reaching an agreement so that the event goes ahead.
Cllr Kavanagh told Donegaldaily that if it can’t go ahead this year then the council should make sure it gets the green light next year.
He said he knew for a fact that Letterkenny Town Council had “bent over backwards” to try and ensure the event went ahead this year.
“The big fear I would have is that some other town in the country saw the potential of this event an took it from us.
“This event was due to take place in the June Bank Holiday weekend which was also a Bank Holiday in the North.
“It would have attracted a large crowd of tourists into the town.
“I am raising the matter because I feel we should keep the pressure on and examine ways that we can accommodate everyone,” he said.