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WA government rejects proposal to hold Air Race World Championship in Northam

The Air Race World Championships at Royal Ascot near London in 2015. (Supplied: Red Bull Air Race)

Plans to bring one of the world's biggest air races back to Western Australia have been grounded, after the state government rejected a local shire's bid to host the event.

The Air Race World Championship was set to land in the Wheatbelt in December, following a detailed pitch from the Shire of Northam.

But after six months of discussions with event organisers, the shire's chief executive said the proposal had been scrapped.

Jason Whiteaker says $2 million was needed from the state government to seal the deal, which he believed would have been a worthy investment.

"We had them committed to come to Northam and we put a pitch to the state government … but unfortunately it wasn't forthcoming, so we've lost the opportunity," he said.

"We ran the numbers and got a return on investment of three or four-fold minimum."

Pilots from across the globe take part in the tournament, navigating through a series of air gates at high speeds.

'Significant' funding request

Mr Whiteaker estimated as many as 50,000 spectators would have flooded the Northam Racecourse over two days, with the event last held in Australia in 2010 over the Swan River.

Northam Shire had planned to host the Air Race World Championship at the local racecourse. (ABC Midwest & Wheatbelt: Sam McManus)

"The plan was to hold an event similar to what was held on the Swan River 12 years ago. We were going to have ours at the racecourse with the grandstand," he said.

"World Air Race had done site inspections and were really excited about the opportunity, given its proximity to the air strip as well.

In a statement, Tourism Minister Roger Cook confirmed his department chose not to support the bid.

Tourism Minister Roger Cook's department rejected the bid. (ABC News: Keane Bourke)

"The WA government received a request for a significant funding proposal to support an event in Northam … this request was not progressed after a review process undertaken by Tourism WA," he said.

Mr Whiteaker was hopeful his shire could host the event next year, with the circuit stopping off in Lake Macquarie in New South Wales this November.

"They've secured extensive television coverage, so it would have been good for not only Northam, but for the region and the state as well," he said.

"World Air Race are really keen, so we're catching up with them again in August to have a chat about 2023."

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