LIV filed for bankruptcy protection in September as part of a restructuring after Saudi Arabia's Public Investment Fund announced it would end its financial backing after the 2026 season.
A raft of players, including former world number one Jon Rahm, have since left LIV, prompting private capital firm BC Partners to drop its bid to relaunch the breakaway circuit, the Financial Times reported on Wednesday.
Backed by public funding in host state South Australia, Adelaide has hosted four annual LIV events at The Grange Golf Club and was scheduled to stage the next one at Kooyonga Golf Club in March.
South Australia Premier Peter Malinauskas said on Thursday he could not see the event going ahead and cast doubt on the future of the entire circuit.
"It feels like it's game, set and match as far as I can tell," Malinauskas told local radio station ABC Adelaide.
"That's because BC Partners, that is the funders of LIV 2.0, I guess, have arrived at the same conclusion that we were, like, if you don't get the players to sign up, then it doesn't go ahead.
"In terms of other arrangements, we'll have to take advice on that ... but clearly the event as far as we can tell won't be going ahead at Kooyonga next year."
Kooyonga Golf Club filed a motion in a US bankruptcy court in September that said LIV had failed to pay the first installment of its venue fee, despite being granted an extension.
The club said in an emailed statement to Reuters on Thursday that it was aware of reports regarding LIV's financing but had not received any advice from LIV.
"We are seeking clarification," it said.
In October, BC Partners made an initial investment in LIV and planned to provide up to $300 million in financing to help the league emerge from restructuring and strengthen its finances ahead of the 2027 season.
LIV and BC Partners did not provide comment when contacted by Reuters.
The disruption caused by the Saudi-backed league to global golf has drawn plenty of critics but Australia has been one of its most enthusiastic hosts.
More than 115,000 people attended LIV Adelaide across the four-day event last February, a record for a professional golf tournament in the nation.