After two years of discussions, a 400-page contract and an intense 15-hour showdown at the Federation's annual meeting in Chicago last weekend, organisers from Montreal announced they were severing their relationship with the Federation of Gay Games.

The two groups failed to agree on the number of participants, the scope and control during the planning of the games.

While the FGG demanded that Montreal invite fewer athletes, the organising body said it didn't want Montreal to lose money the way the last few Gay Games did.

A statement by the Montreal organisers said the FGG demanded a cap of 10,000 participants when Montreal was confident of drawing more than double that number. FGG also demanded a budget cut from an original C$20 million down to C$10 million. Compromise suggestions put forward by Montreal were rejected.

Most contentious of all, said Montreal officials, was the FGG's insistence that it retain budgetary control while leaving all legal responsibilities for the administration of the games in Montreal's name. The statement also claimed that while the FGG is not participating in any way in fundraising for the Games, it collects close to C$1 million for the license rights to the trademark.

Organisers will hold Games - without the official Gay Games branding - in Montréal in 2006 as planned and vowed to create a democratic, inclusive and dynamic international sporting movement.

Meanwhile, Atlanta, Chicago and Los Angeles - which were the other candidate cities in 2001 when Montréal was chosen to host Gay Games - have entered exploratory discussions with the FGG after it ended its relationship with Montreal early this week.