Race organisers have admitted that scrapping the Malaysian grand prix would have legal ramifications.
Government and Sepang circuit chiefs this week have flagged the possibility that the race will be scrapped due to the dwindling appeal of formula one.
Some reports hinted a decision was imminent, but Sepang chief Razlan Razali has now acknowledged that a "watertight" contract until 2018 is in force.
"It will involve legal issues if (Sepang) breach the contract which was signed last year and runs through 2018," he told the local Bernama news agency.
"(Sepang) will review the host’s job when the contract expires in 2018 but the race will certainly be held next year," Razali added.