State governor Kurt Beck said the reason was that the European Commission wasn't expected to quickly approve planned government aid of â‚¬13 million ($16 million).
The German GP has alternated in recent years between the Nuerburgring and Hockenheim. Next year's race is at Hockenheim.
The Nuerburgring Grand Prix circuit has been used for F1 since 1984, when it was created after altering the Southern section of the full circuit that is in excess of 25 km in length.
The northern part of the circuit, known as the Nordschliefe, was last used for F1 in 1976 and hosted it's last ever sportscar race in 1982 after safety fears forced the alteration of the circuit.