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Supercars officials have cancelled this year's event in Kuala Lumpur due to a legal dispute involving their Malaysian promoters.

The championship was scheduled to head to the city to race on August 12-14, but chief executive James Warburton said ongoing legal action means there is insufficient time to prepare the street circuit.

"We apologise to our fans for any inconvenience, but unfortunately this is a matter outside of our control," Warburton said in a statement on Wednesday.