The Sculpture by the Sea exhibition in Perth could be scrapped following a drop in corporate funding, but the Sydney event is not facing a similar financial crisis.
A spokeswoman says the not-for-profit organisation was facing a "substantial deficit" in Western Australia.
"This has been largely due to the cyclical nature of sponsorships where a number of key sponsors did not renew their support in the last two years, and we did not secure sufficient new sponsors to replace their support," she said on Monday.
"It's ironic that the very popularity of Sculpture by the Sea, Cottesloe is what has led to this situation as we cannot find the funds to stage an event with this many visitors."
The WA government contributes more than $400,000 to the outdoor art show, which is in its 15th year in Perth and 23rd year at Bondi beach.
Culture and the Arts Minister David Templeman encouraged corporate WA to look at the benefits of supporting the event so it could continue beyond this year.
Australian Associated Press