Instead, the event will return to Earnslaw Park, on August 12.
The invitational will be held in conjunction with the opening of Winter Games NZ.
Last month, the Otago Daily Times reported a storm could be brewing over the event, with the Wakatipu Rugby Club expecting to be booted off the Rec Ground, its home ground, to keep the surface in pristine condition ahead of the arrival of two Rugby World Cup teams in the town who will use it for training.
NZSki had wanted to move the annual Parklife Invitational to a larger venue in the CBD and the Rec Ground had been chosen.
However, NZSki sales and marketing general manager Craig Douglas said he and NZSki chief executive James Coddington "made the call" not to proceed with the Rec Ground option "a couple of weeks ago".
"We were unable to agree with Lakes Leisure on workable conditions for use of the ground," he said.
"Their issue, of course, is that they had commitments that had been made for them in conjunction with the RWC and in trying to protect their ability to meet those commitments, the conditions they were putting on us, we felt, were too difficult to stage a successful event with any certainty.
"It was around the requirement for the council, or for Lakes Leisure, to [ask] us to make more and more steps to protect the ground, with there being no end to that, with even the potential for them to call the event off if they felt the ground would be [damaged]."
To create the event, snow is trucked down from Coronet Peak and scaffolding erected for the ramps and railings. This year, organisers had planned to also hold an FMX [freestyle motocross] display. The display was now in doubt, as there were "issues with space", Mr Douglas said.
"We are looking to grow it [the event] and that's going to be a difficult task, especially when we're already at capacity [at Earnslaw Park]."
However, Mr Douglas expected there would be a bid to hold next year's Parklife Invitational at the Rec Ground.
"We're hoping that Lakes Leisure will take a different view outside Rugby World Cup obligations," he said.
