In April 2016, the staff operating a 1908-built cliff lift in Bournemouth East Cliff Seafront noticed ground movements and closed it down.
A major cliff failure occurred afterwards. It damaged the historic cliff lift and toilet facilities.
The Bournemouth Borough Council said the stabilisation work would cost £5 million and the complexity of the issue has increased because the land is privately owned.
Chris Sander, Head Operations for Tourism, has now confirmed that funds are not available to work on the area.
He said, “Ever since the cliff fall in 2016, it has been the council’s ambition to reinstate the cliff lift and associated facilities as quickly and efficiently as possible, and this ambition remains.
“The cost to stabilise the cliff face is the biggest hurdle to achieving reinstatement and is estimated to be significant.
“The council currently has no means of directly funding this work and continues to look for grants and sustainable commercial investment to help solve the problem.”