Tourism and Sports Minister Somsak Phurisrisak insists a Formula One race cannot be held in greater Bangkok because it is unlawful.
His comment came after Michael de Santiesteban from Red Bull met Formula One supremo Bernie Ecclestone last week.
According to Santiesteban, a key person who is trying to bring Formula One to Thailand, Ecclestone still wants the event to take place in Bangkok.
"It would be a night race," Santiesteban told the Bangkok Post.
"Sanam Luang and Ratchadamnoen Avenue are no longer in our plan. We are looking for another venue in Bangkok."
He added: "A Bangkok race would be a success for geographic reason. It is better than South Korea and Japan."
Concerned parties initially agreed to a plan to host a Formula One race on Ratchadamnoen Avenue but it was shelved because this was against the environment law.
Somsak said that it was impossible to host a Grand Prix event in places in greater Bangkok such as Muang Thong Thani in Nonthaburi.
He said he had informed Sports Authority of Thailand (SAT) governor Kanokphan Chulakasem about the problem.
"We just can't organise an F1 race in greater Bangkok," he said.
"If we can't find a venue outside greater Bangkok, then the plan should be cancelled."
Somsak has suggested the race should be held in the provinces such as Phuket and Chon Buri.