IT IS feared Woodford's Dreaming Festival will not be revivable after its cancellation this year due to a funding shortfall.
Organisers have conceded they will not attract the more than $2 million needed to run the festival this year.
About $800,000 of that comes from sponsorship, which has dried up in recent years, Woodfordia executive director Bill Hauritz said.
The festival organisers are realistic about the prospect it may not recover.
"We've been aware since last year of the difficulty in getting funding," Mr Hauritz said.
"(In the past) we have had great sponsorship and funding but in the last few years it's becoming increasingly difficult."
Last year the Dreaming Festival merged with the Woodford Folk Festival to make itviable.
That might not be an option in the future, Mr Hauritz said.
"While we're hopeful and determined to keep it on the agenda, we're certainly not in a position to be over optimistic," Mr Hauritz said.
It is another blow for the Woodfordia arena, which this year loses the winter Splendour in the Grass festival back to Byron Bay after two years on the Sunshine Coast.
"There's a global financial squeeze on worldwide," Mr Hauritz said.
"I think we're doing better in Australia than most places, but I'm also aware there's a general downturn in festival attendance worldwide."