Aitken delivered his warning at a meeting of City of Greater Geelong when presenting the Council’s latest financial report.

Geelong, one of several region hubs for Victoria 2026, is seen as a key part of the plan to spread the event across the region as it is expected to stage a series of sports, as well as the Closing Ceremony in three years’ time.

The Victoria Government is committed to invest AUD$142 million (£78.5 million/$91 million/€91.5 million) into the redevelopment of the Closing Ceremony venue Kardinia Park as well as up to AUD$292 million (£161 million/$187.5 million/€188 million) into building sporting infrastructure.

But Aitken has raised concerns over the City of Greater Geelong’s finances after revealing that it had "blown out to a multi-million-dollar deficit".

Aitken, the city’s finance portfolio holder, admitted that the Council needed "significant financial support from both State and Federal Government" to deliver the Games.

"All of this is actually starting to occur before we even consider our biggest financial risk which we're facing, which is how do we pay and contribute towards the Commonwealth Games in 2026," said Aitken in a report by Australian broadcaster ABC News.

"Council wholeheartedly supports the delivery of the games in regional Victoria, because this is a once-in-a-lifetime opportunity, but the reality is that our latest financial results indicate that we can't afford it.

"When you see our financial figures, as released to the end of December, there is no fat or financial capacity to be able to contribute towards the Games."

Aitken said that the City of Greater Geelong was expected to contribute AUD$50 million (£28 million/$34 million/€32 million) "and more possibly".

According to ABC News, the Council’s latest financial report released last month showed that the city registered a deficit AUD$8.4 million (£4.7 million/$5.6 million/€5,3 million) at the end of 2022.

"[To ensure] that the Commonwealth Games is successful and don't financially ruin a Council, an exemption from the rate cap is one obvious solution," added Aitken.

"We do embrace the State Government’s wish to deliver the Commonwealth Games in regional Victoria, but we can’t do it without significant financial support and intervention by the State and Federal Governments."

Councillor Bruce Harwood cited an "unprecedented increase in costs of construction materials" as the reason for city’s financial issues as he also expressed his concerns.

"If we’re unable to meet our financial commitment to the Commonwealth Games, it should not necessarily be to the detriment of the community overall," said Harwood.

Speaking after the meeting, Victorian treasurer Tim Pallas told ABC News that the Government would continue to hold talks with the City of Greater "about what constitutes a reasonable and appropriate level of contribution".

"We're not expecting a matching contribution, we're expecting a substantial contribution," said Pallas.

"We're not asking for a dollar-for-dollar matching contribution from local Government."

La Trobe Mayor Kellie O’Callaghan claimed that other regions would be willing to help Geelong host the Games.

"I’m sure Shepp {Shepperton] would be falling all over themselves to get access to these events,” O’Callaghan told ABC Radio’s Statewide Drive programme.

"Maybe be prepared to step away from some of the stuff you’ve committed to, if it’s not something you’re going to be able to partner in."

Geelong is set to host swimming, Para swimming, diving, triathlon, Para triathlon, weightlifting, Para powerlifting, beach volleyball, coastal rowing, cricket, golf, artistic gymnastics and hockey events at Victoria 2026.

Kardinia Park has also been chosen as the venue for the Closing Ceremony and is undergoing a major revamp for the Games.