Ron Walker, chairman of the Australian Grand Prix Corporation, threatened to axe the Melbourne event if the sport cannot resolve its political problems.
"If the disunity continues Melbourne will seriously consider its position on continuing with formula one," he told Melbourne's Age newspaper from Europe, where he has been in talks with Bernie Ecclestone.
Walker said the ideal resolution would be for 69-year-old Mosley to honor his promise to vacate the post as FIA president.
"In my view Mr. Mosley should walk away from the sport with dignity rather than slowly strangle to death the great brand of formula one," he said.
"The sport needs fresh and dynamic leadership more than ever before to lead F1 into a new era of motor racing."
Should FOTA resurrect its breakaway plans and leave Melbourne contractually obliged to a depleted official series, Walker predicted the death of the current Australian GP.
"Without Ferrari … (it) will lose much of its glamour and therefore the government investment will come into question," he said.