By David Hunter
The European Commission says a UK City cannot be named 'European Capital of Culture 2023'.
That's despite other countries outside the EU being allowed to apply.
Derry City and Strabane District council had teamed with Belfast City Council to make a costly joint bid for the accolade.
In a statement the two council's said they were 'bitterly disappointed'.
"We are aware that DCMS are still in discussions with the European Commission on behalf of all five cities involved and are seeking urgent clarification on the matter" it said.
"We are, however, deeply disappointed with this recent development but are committed to ensuring that the time, energy, enthusiasm, ideas and resources put into our bid are carried forward regardless.
"It is still our intention to ensure our cultural ambitions are realised and will be in discussion with DCMS and Belfast City Council in the coming days."