HEPBURN Shire has lost its hosting rights to the Daylesford Foto Biennale.
The two-yearly photography festival has been held twice in Daylesford with planning for next year already underway.
The Advocate believes the biennale has received a "handshake" agreement from the City of Ballarat for funding and support.
Biennale director Jeff Moorfoot, who has often spoken about a lack of support from Hepburn Shire Council, said last week he had no comment at this stage.
The DFB'09 website says the festival's mission is to "raise the profile of photography as a legitimate art form, and to raise the profile of Australian photographers and Australian photography on the world stage".
The website says the third international festival of photography is to be held from September 4 to October 4 next year.
Meanwhile, shire tourism manager Geoff Ryan said the council wished the biennale "all the best in its move to Ballarat".
"(We) hope the council there can provide the level of support required," he said.
"The council has provided organisers with extensive support over the years.
"This has included administration and promotional support, and free and reduced (costs for) use of venues.
"For instance the Daylesford Town Hall is used for the event for up to a month at a time.
"Unfortunately this council does not have the budget and the facilities to meet the needs and the expectations of the group."
Mr Ryan said it would be "disappointing" if the council's assistance was not acknowledged by the committee.
"The council would hope and welcome it if some components of the festival could still be held in the shire, and wishes event organisers all the best," he said.
Ballarat City marketing and business development manager George Sossi said his city was "very happy" to have the chance to host the biennale, although nothing had been signed.
"We are currently in negotiations with the biennale organising committee," he said.
Mr Sossi said Ballarat would be happy to work with neighbouring shires to ensure the event's success.