"I want value for money for Victorian taxpayers and that means that you want all of the competitors, you want all of the race teams," Labor premier John Brumby is quoted as saying by the Australian news agency AAP.
"We won't be paying for half an event, simple as that. So I hope that they can resolve this, I'm sure that they can. I think it's very early days," he added.
Brumby's comments follow Australian Grand Prix Corporation chairman Ron Walker saying Max Mosley should end the dispute by quitting as FIA president.
Walker, who was in London for talks with Bernie Ecclestone this week, is a known close ally of the F1 chief executive.