Organisers of the 141-year-old Stawell Gift deny they’re in the grip of a power struggle with the state government.

The board running Australia’s richest and most famous footrace has rejected a $1.4 million rescue package from Sports Minister Martin Pakula.

The bailout comes with a number of conditions, including changes in the way the event is run.

Stawell Athletics Club president Neil Blizzard claimed on 3AW Breakfast that negotiations were progressing.

“We’ve been working with the government for five months,” he said.

“They’ve put a proposal to us, we went back with changes, that was rejected, we’re working on other changes.

“We’re still actually working with the government at the moment to try and get this across the line.”

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