Hundreds of racing participants  including trainers, jockeys and owners will be severely impacted by the move that would cripple the industry in the city.

Mount Isa City Council has been attempting to come to an agreement with the club for about seven years.

Legal representatives from Racing Queensland, acting for the race club, and the council's lawyers have been trying to sort out a deal but the two parties haven't been able to reach an agreement.

One trainer said the prospect of being locked out of Buchanan Park ``was frightening''.

Mount Isa Race Club president Peter Inwood said the terms of agreement council are trying to impose on the club are untenable.

``We've been trying to negotiate a feasible lease for the last seven years,'' he said.

``Council just refuses to negotiate in good faith, the main sticking point is they want us to leave the race club every week  move our gear out then move our gear back in - their case is they've got other users who want to use it.

``There are no other users who want to use it.

``It was built by the race club in 1975 and maintained and upgraded by the race club, so why the hell should we have to leave it.

``It's physically impossible to do.''

 Mr Inwood said that if the club didn't agree to the council's terms for the next two years the club would be permanently evicted.

Mr Inwood said steps have been taken to talk to the Minister for Racing already and the Racing Queensland hierarchy.

``We have never agreed on it, we have been held under threat and duress from previous councils from the start they've never been willing to negotiate a suitable lease,'' Mr Inwood said.

``There are other bodies in town under similar agreements and council has no problem giving them leases.

``Touch football, rugby union, softball - they all operate under leases so there's no reason why we can't either.

 ``We definitely get treated a lot differently [to other sports].

 ``The public of Mount Isa have been very supportive, they always turn out in droves, and we'd like to thank them for their support.''

Mount Isa Mayor Tony McGrady said the current council had been negotiating with the race club for nearly two years.

``We have given them extensions of time on a number of occasions all to no avail and they have ignored the last couple of time frames given to them,'' he said.

``As late as last Friday, at their request, we agreed to have a further face-to-face meeting with the committee of the race club providing the agreement had been signed by midday on Monday.

``That offer still stands.

We don't believe any public discussion will assist in a solution of this matter so we don't intend to make any further public comment on this issue until we receive a response from the race club at midday (today).''

 A Racing Queensland spokesman said it was aware of the situation.

``We have been working with [the] club and council for some time on this project,'' the spokesman said.