Rio de Janeiro authorities say they have shelved plans to build a dedicated F1 track in the city's vicinity, in the Camboata forest area.
Rio had initiated a project to compete with Sao Paulo's Interlagos venue and bring Formula 1 back to the Brazilian metropolis.
Former F1 chief executive Chase Carey had agreed back in October to a conditional deal for Rio to stage a round of the F21 world championship while the plans also enjoyed the full support of Brazilian president Jair Bolosnaro.
Rio Motorpark, the company heading the project had earmarked $170 million for the track's construction, an amount that did not include any public investment.
However, the construction of the circuit in the Deodoro region also involved the felling of up to 70,000 trees across 55 hectares of land, and required the approval of environmental authorities to go ahead, a green light that environmentalists vehemently opposed.
On Monday, Eduardo Cavaliere, Rio's environment secretary, put the project to rest, stating on social media that Mayor Eduardo Paes had ordered him to end the proceedings to get environmental licences to build the circuit in the Camboata forest.
"(We are) officially giving up on the construction of the Rio international autotrack," Cavaliere said.
In December, Formula 1 announced that Interlagos Circuit would host the Sao Paulo Grand Prix in Brazil until 2025.
While this year's event is scheduled for November 7, a recent legal squabble involving the event's promoter, Brazil Motorsport, and the city of Sao Paulo has yet to play out.
Sao Paulo is reportedly providing government funds to support the event to the tune of $3.7 million according to court documents.
But Sao Paulo Judge Emilio Migliano Neto is looking into claims of misappropriation of the public money.
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