Organisers of Southbound, which is held in Busselton each year, are talking to third parties about the continuation of the music festival.
Sunset Events director David Chitty could not confirm whether the future of the festival was at risk because the discussions were confidential at this point.
In 2016, event organisers were forced to move the festival dates from January to December after the Waroona bushfire caused road closures between Perth and the South West.
The dates were changed to run the festival between Christmas and New Year instead of the first weekend in January.
NewsCorp reported there were poor ticket sales at last year’s event.