Phillip Island has lost the MotoGP

Phillip Island has lost the Australian Motorcycle Grand Prix just hours after Major Events Minister Steve Dimopoulos revealed the state government’s last-ditch effort to keep the race.

Bass Coast Mayor Cr Rochelle Halstead has since confirmed it.

Minister Dimopoulos said earlier today that while the government had turned down Dorna Sports’ (MotoGP Sports Entertainment Group) request to move the race to the Albert Park Lake circuit it had upped the ante on marketing support and financial support for the event, in excess of the organiser's requests.

This is incredibly disappointing for the community of Bass Coast and the whole of Victoria. It will leave a huge black hole in the economy and also the incomes of cafe operators, restaurant operators, hospitality providers, retailers, you name it," said Cr Halstead.

"We'll be seeking an urgent meeting with the Premier and the Minister to discuss economic opportunities for Bass Coast mindful that we also lost the benefits expected to flow from hosting Commonwealth Games events here.

"We'll be looking for the government to turn its mind to economic opportunities for Bass Coast which will help ease the pain of losing the GP after this year."

Cr Halstead said the announcement had come as a shock, especially as little more than 24 hours earlier the government has issued a media statement, about how they'd put their best foot forward in an attempt to retain the race.

"It's incredibly disappointing and one that will be felt long after we lose the race next year."

Phillip Island is seeing the race stripped away after three decades hosting the event and after the biggest crowd of 93,000 flooded on to the Island last October, the biggest crowd to attend the event since 2012.

“In a major blow to the state's major events calendar the race will move interstate next year with the government failing to lock in a new contract," said the Herald Sun about 4pm on Wednesday.

The Herald Sun said it had confirmed the blow with government sources, that this year's race would be the last to be staged at its iconic Phillip Island home, where it has been held annually since 1997.

The event brings tens of thousands of visitors to Phillip Island every year.