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International Committee for the Mediterranean Games (ICMG) president Amar Addadi said at the weekend Greece was in the "red zone" after failing to build two planned villages for athletes and officials.
The Greek organising committee for the 2013 Mediterranean Games (OCMG) have rebuffed claims the country could lose the event over budget issues.
International Committee for the Mediterranean Games (ICMG) president Amar Addadi said at the weekend Greece was in the "red zone" after failing to build two planned villages for athletes and officials.
The cities of Volos and Larissa in central Greece were awarded the event in 2007 but the government's decision to withdraw 190 million euros ($251.6 million) of funding for the accommodation projects amid the country's economic crisis had placed doubts over Greece's ability to host the event.
But the OCMG insists a "feasible and reliable alternative" will be accepted by the ICMG.
"Firstly, without any doubt the games will take place in Greece in 2013 and secondly the development of the region and the country will also take place," OCMG president George Koletsas said in an interview.
"We are fully aligned with Mr Addadi and are discussing and planning together step by step, with the aim of hosting the best games.
"Since the government stated that they are incapable of providing the funds we have been looking at alternative scenarios which will allow us to give the best possible solution for the athletic family."
Among the alternatives that the OCMG are investigating are housing athletes and officials in university accommodation and luxury cruise liners at the port of Volos.
Koletsas and his team gave their latest progress report to the ICMG's coordination commission on Dec 12 and he stressed that all preparations are on track.
"The ICMG have given us their approval to be able to come back with a feasible and reliable alternative solution to the villages within the first quarter of 2011 and that is exactly what we plan to do," he said.
"We have a deadline of December 2012 to finish and everybody is proud and 100% committed to make that happen."