UK news service Sky Sports reports that the financial problems stem from the liquidation of one of A1GP's UK-based business arms.
A1GP chairman Tony Teixeira said the cancellation did not mean the end of the road for the series.
"A1GP may be down, but I do not accept we are out,” he said. “We have had four exciting seasons that have proved we are a force in the sport and now we shall consolidate on what we have achieved to date. My efforts will be on finding a way forward with the support of some very loyal people."
Teixeira said A1GP would refund the Australian race organiser’s fee, and also donate AU$50,000 to a charity of its choice.
The next scheduled race is in China on November 15.
