The Rali Vinho Madeira will not form part of the Intercontinental Rally Challenge in 2011 and 2012, series promoter Eurosport Events has confirmed.

Managing director Geraldine Filiol revealed that the organisers of the event had informed Eurosport Events that they would not be able to fulfil the details of their contract, particularly in terms of funding.

"This has created a number of logistical and operational difficulties and is not what we would have expected from an event promoter," Filiol commented, "As a result, we have decided to remove the rally from our calendar for this year and 2012, when our existing agreement was due to expire.

"All teams, manufacturers, partners and suppliers were informed as soon as the situation had become clear in an effort to prevent any unnecessary expenditure. They understand and support our decision."

The Rali Vinho Madeira was due to form round seven of the 2011 IRC season, but Filiol confirmed that it would not be replaced, meaning that there would be just eleven rounds on this season's schedule. Drivers and manufacturers will continue to count their best seven scores only.

The next IRC event is Sata Rallye Acores, which runs over 14-16 July. The gravel rally is one of the highlights of the season with its spectacular stages through stunning countryside. All seven IRC manufacturers are set to be represented on the island event.