The dispute arose after the Falmouth Working Boat Association demanded racing within the harbour with races finishing on club lines.

But the Port of Falmouth Sailing Association, which manages the racing, said the decisions were taken on safety grounds and races have not finished on club lines for about 30 years.

The FWBA's secretary Arthur Williams said: 'The working boats regret that their presence will be absent from Falmouth Week and hope that all those that take a keen interest in its races will understand and empathise with the decision.

'The FWBA wants everyone to see the spectacle of its members' boats finishing in the club regattas on the club's finishing lines, not a mile-or-so out in the Carrick Roads.'

But Mark Osborn, PoFSA's chairman, said the request was not possible and a solution that the race management committee considered workable had not been found. However, he said the committee had agreed to look at the issue again for 2009.

Falmouth Week takes place 9-16 August.