Dunedin Mayor Dave Cull says Dunedin City Council is unlikely to bail out the Otago Rugby Union.
The Otago Daily Times reported on Friday the union can't pay its creditors and it's preparing to post another loss.
The union has already lost a total of $4 million over the past five years.
Union chairman Wayne Graham has said a bailout from the New Zealand Rugby Union is not an option and that they need the full support from the community to help save Otago rugby.
Mr Cull says while the council has not yet been asked for assistance, there would not be a great inclination to help.
He says past councils supported the union on a number of occasions and it would need convincing to do it again.