The hopes of finding the wreckage of Malaysia Airlines flight MH370 are fading after the Australian government's Federal Budget failed to provide extra funding for the search operation.

On Tuesday, Treasurer Scott Morrison handed down the 2016 Budget which did not include any new money for the search of the doomed airline - meaning there is little chance the search will continute beyond July this year.

The agency coordinating the search - the Australian Transport Safety Bureau - also faces job cuts and its funding being slashed from $102 million this financial year to $19.4 million per year after July, News Corp reported.

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Treasurer Scott Morrison (centre) who delivered the Budget did not mention extra funding for missing MH370

Investigators (pictured) carrying the fragment of wing from the beach on Reunion Island in the Indian Ocean as Malaysian Prime Minister confirmed the fragment was from missing MH370

The government has spent $90 million scouring more than 120,000 square kilometres of seabed in hope of finding the aircraft (stock image)

The Australia government has spent $90 million scouring more than 120,000 square kilometres of seabed in the southern Indian Ocean over the last two years in a desperate attempt to find the wreckage.

Last year, Australia, Malaysia and China agreed the search area will not be expanded if no new evidence of the plane's whereabouts are uncovered between now and when the search ends in July.

The aircraft disappeared on March 8, 2014 with 239 passengers and crew on board after diverting from its planned route from Kuala Lumpur to Beijing.

Experts believe the plane may have crashed into the Indian Ocean off Australia's west coast.

But the debris could by now have easily spread to locations far from the actual crash site, meaning the chances of finding the crucial fuselage, where the bodies of those on board are slim.

Crew aboard the Australian Navy ship HMAS Success look over to the Royal Malaysian Navy ship KD LEKIU during a Replenishment at Sea evolution in the southern Indian Ocean during the search for flight MH370

The discovery of a 7ft-long wing part called flaperon on the French Indian Ocean was confirmed as of MH370

Beachgoers walked past a sand sculpture made by Indian sand artist Sudersan Pattnaik with a message of prayers for the missing Malaysian Airlines flight MH370 - which vanished from radar in March 2014

Last month, authorities confirmed two pieces of debris found in Mozambique were 'almost certainly' from missing MH370 after two unique stencilling were spotted on both fragments.

The Australian Transport Safety Bureau concluded the two parts - a flap track fairing and a segment of the horizontal stabilizer - were from the doomed plane.

The flap track fairing was found by South African teenager Liam Lotter while holidaying with his family in Mozambique in late December, while a US blogger found the stabiliser in February.