Cricket World Cup chief executive John Harnden is the acting chairman of the Australian Grand Prix Corporation. He was seen as shoo-in to replace Ron Walker permanently and one source described him as "the best sports administrator in Australia".

But it is understood Mr Harnden, who also headed the Melbourne 2006 Commonwealth Games, declined what was seen as an unsatisfactory offer of a 12-month position with Mr Little as his deputy, with the possibility of the role being extended subject to performance.

It follows a media report that the Andrews government is refusing to lock in Mr Harnden, instead favouring Mr Little.

The uncertainty has come to the attention of formula one boss Bernie Ecclestone who, according to one source, is "very jumpy" about the leadership. It follows long running concerns about the large taxpayer subsidies needed to keep the race in Melbourne.

Mr Little was reported in the Herald Sun as saying he was interested in joining the grand prix board, although the chairmanship had not been offered to him.

"If there is an opportunity to get onto the board, then I would like to do that," Mr Little told the Herald Sun.

A spokesman for Sports Minister John Eren declined to comment, other than to say the government would announce a decision in due course. "No final decision has been made on who will be the next chair of the Australian Grand Prix Corporation," the spokesman said.

Mr Little, previously the boss of logistics company Toll, was a critic of the former Napthine government's plans to develop the Port of Hastings to handle containers.