WOMAD is still hoping to go ahead as planned next year despite its production partner, Taranaki Arts Festival Trust (TAFT), pulling out.
TAFT says the financial risk is too great in the midst of the Covid-19 pandemic, which has seen countless events cancelled.
The three-day festival has been held in New Plymouth for the last 20 years and is the biggest event for the region.
WOMAD director Chris Smith says it brings in millions of dollars to the local economy.
He's still hoping next year's event will go ahead as scheduled.
"At WOMAD we have been working hard to find a new production partner to keep the festival alive in 2021 and beyond," he said.
"Those discussions are ongoing but very positive and we hope to be able to announce the continuation of WOMAD New Zealand into 2021 in the coming days."
Smith says the format of next year's festival will be "somewhat different", focusing on artists based in New Zealand rather than international guests.
"New Zealand has had fantastic and enviable success in controlling the pandemic, and whilst this means it’s all but impossible for artists to attend from overseas it means we are fortunate enough to be able to present a WOMAD festival locally with all the features we know and love."
WOMAD 2021 is currently scheduled for 12-14 March.
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