Neither Flintshire not Liverpool are certain for the 2007 event
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National Eisteddfod organisers say they are having difficulty finalising a site for the 2007 festival.
Liverpool had wanted to stage the event, although fears have been raised by the city's Welsh community over their ability to organise it.
The idea of holding the annual Welsh cultural celebration on Merseyside has already been criticised.
Eisteddfod director Elfed Roberts said he also understood Flintshire was facing financial problems over its bid.
A question mark over the siting of the 2007 event was raised after Roderick Owen, President of Cymdeithas Cymry Lerpwl (Liverpool Welsh Society), confirmed he had sent a letter to Mr Roberts.
The letter, sent 10 days ago, claimed members of the society had rejected the idea of holding the eisteddfod in Liverpool because they felt there were not enough Welsh speakers among them to organise the event.
The eisteddfod, an annual celebration of music, dance, poetry, and art, has been held in Liverpool three times before - in 1884, 1900, and 1929. Traditionally, it moves around Wales each year and this August it will be hosted by Faenol in Gwynedd.
However, Rev Dr D Ben Rees, who has been a minister in Liverpool for many years, said he still believed it was practical to invite the Eisteddfod.
A meeting to discuss the Liverpool invitation is held this weekend
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There were plenty of volunteers who would work hard to ensure the festival's success in 2007, he said.
"A number of people have offered me help. I haven't seen the letter, but I doesn't put an end to your hopes. Everyone has their right to their opinion."
The 60 members of the National Eisteddfod Council are due to meet in Aberystwyth on Saturday to discuss the invitation by Liverpool to hold the event in Liverpool, in the year before it hosts the European Capital of Culture celebrations.
Mr Roberts said: "The council is still keen for us to visit Liverpool. We will need to look at all pros and cons before coming to a decision."
Archdruid's opposition
"Originally we were in discussions with Flintshire Council but it has come in to light that they do not have the funds.
"Liverpool has expressed interest and now we have two opinions on the matter within the Welsh community there. It is a problem, but a problem we can overcome."
In December last year, the Archdruid of Wales, Dr Robyn Lewis said holding the eisteddfod in Liverpool was a stupid idea, and he would refuse to attend.
Flintshire Council said it was preparing a statement on its position with regard to the 2007 National Eisteddfod.