A TWEED Shire Council report has revealed the reasons behind the failed launch of a Murwillumbah country roots festival.

Organisers of the Rhythmicana Festival - Australian country music star Kasey Chambers and her family, and promoter Michael Chugg - canned the planned 2017 edition of the ill-fated festival which had already been postponed twice, from August last year and May this year.

After organisers sought financial support from Tweed Shire Council, the future of the festival, originally named the Tweed Valley Country Roots Festival, remains shaky.

In an email to the council, Chugg Entertainment and the Chambers family said they planned to further delay the event until October 2018.

"We want to assure you and the Tweed council that we are 100% committed to building Rhythmicana into a spectacular internationally recognised music event,” the promoters said.

"However, we believe the best business plan for the event is to have the inaugural festival in October 2018. We have been frantically trying to secure an international headlining artist for the 2017 Rhythmicana festival, but unfortunately, plans have not come together in time.

"We firmly believe the festival will have great, long- standing benefits for launching in 2018 with the best artist line-up possible.”

A council report stated organisers hadn't defaulted on their sponsorship deal and the request for a postponement was at the council's discretion.

After entering into a three-year financial deal in May - worth $15,000 for this year, $10,000 for 2018 and $7500 in 2019 - the council's report recommended it withdraw financial support.