A new organiser is being sought by Sheffield Council to put on the Sheffield Half Marathon next year.
The authority has announced it ‘respects’ the decision of Sheffield Marathon Trust and Sheffield Half Marathon Ltd to step down from the event.
The race was cancelled earlier this year due to a lack of water while runners waited on the start line.
But thousands of runners still completed the course, despite some not being aware of the cancellation until the finish because they didn’t hear the announcement.
In the days after the cancelled race, supplier Water Direct said it was not paid by Sheffield Marathon Ltd - but organisers said they were never told to pay in advance.
A statement released by Sheffield Council said: “We’d firstly like to acknowledge the service the Sheffield Marathon Trust and Sheffield Half Marathon Ltd have given to the people of Sheffield through the charities they’ve supported.
“In the last 33 years the Sheffield Marathon Trust has contributed £1.5million to local charities and this is something I know has greatly benefited many Sheffield people.
“We are aware of their decision not to organise the 2015 event and fully respect that.
“We have already started work to seek event organisers who have a track record in delivering successful large road races across the UK. We are conducting a competitive bid process with a number of event organisers over the coming weeks who can operate the event at no cost to the Council. The competitive bid process is commercially confidential and the Council will not disclose who the bidders are until after the process is complet
“We are keen to ensure the 2015 event continues to support local charities and remains a fantastic sporting event for the city.”