Formula One's CEO Bernie Ecclestone has revealed that the contract to host next year's inaugural Grand Prix of America in New Jersey has been torn up after the race organisers missed deadlines in their agreement.

It follows months of speculation about the financial situation of the race and the resignation in August of its president Tom Cotter.

The grand prix was due to take place in June 2013 on a 3.2-mile street circuit which snakes alongside the Hudson river opposite Manhattan's historic skyline. However, Ecclestone says that the organisers "have not complied with the terms and conditions of the contract which is now gone anyway.

"They don't have a contract."

It is a big blow to F1 since the total income lost from the race would be as much as £150m as the organisers had a 10-year contract and an annual fee estimated at £15m. However, the slot could be filled with another new race and Ecclestone is known to be in discussion about a Mexican Grand Prix. "After Mexico we want to go to South Africa," he has said.

Construction on the New Jersey site has begun and this year the two-time F1 world champion Sebastian Vettel and the former driver David Coulthard had demonstration runs on the circuit.

However, the race has been beset with problems since it was announced in October last year and Ecclestone expressed doubts as recently as May that the organisers would be ready. "They are sorting things out internally with some of their funds," he added in June. "If they are ready for 2013 we will have them."

The promoter of the race is the US fund manager Leo Hindery and although it has been confirmed that public money would not have been used to support the project, its backers had not been named. A senior motorsport industry source said: "Pricing for sponsorship etc is unrealistic and not obtainable in the current market – hence the malaise."

The provisional 2013 F1 calendar was released last week and the New Jersey race was marked as subject to confirmation. The calendar will be finalised on 28 September by the World Motor Sport Council of F1's governing body the Fédération Internationale de l'Automobile and Ecclestone said that if the organisers cannot get financial support by then, it will be impossible for the race to take place.

"We are pretty close to the final deadline," he added. "We have got a world council meeting coming up. I think if somebody got behind them it could happen in 2013 because they have come a long way with the circuit."

It is the second new F1 grand prix scheduled to take place in the US over the next 12 months. The first is the United States Grand Prix in Texas, which has also had a troubled development. However Ecclestone has confirmed that it is now on track and will be the penultimate race of this season, on 18 November.