Neither Flintshire not Liverpool are certain for the 2007 event

But they admit they face a dilemma in finalising the location for the event.

Liverpool's Welsh community have raised fears over their ability to organise the event, although the city council has re-stated its commitment.

Meanwhile, the National Eisteddfod Council is set to hear that Flintshire Council has said it cannot afford to host the festival.

The news comes as the Archdruid of Wales, Dr Robyn Lewis, is to call on the national council, the ruling body, to hold all future eisteddfodau in Wales.

A question mark over the siting of the 2007 event was raised after Roderick Owen, President of Cymdeithas Cymry Lerpwl (Liverpool Welsh Society), confirmed he had sent a letter to eisteddfod director Elfed Roberts.

It leaves us with a bit of dilemma but we're not hitting the panic button as yet. Eisteddfod director Elfed Roberts

In the letter, sent 10 days ago, he claimed members of the society had rejected the idea of holding the eisteddfod in Liverpool because they felt there were not enough Welsh speakers to organise the event.

The eisteddfod, an annual celebration of music, dance, poetry, and art, has been held in Liverpool three times before - in 1884, 1900, and 1929.

Traditionally, the festival moves around Wales each year and this August it will be hosted by Faenol in Gwynedd.

Eisteddfod director Elfed Roberts said the national council meeting in Aberystwyth would consider the archdruid's proposal as well as the options for the 2007 venue.

A meeting to discuss the Liverpool invitation is held this weekend

He said: "The Liverpool bid is still on the table. We will discuss the pros and cons of that and come to a decision. It does not necessary mean that we will make a final decision."

He said Flintshire council had told him last month that it was facing financial problems over its bid to host the event.

"It leaves us with a bit of dilemma but we're not hitting the panic button as yet. We haven't held the 2005 eisteddfod yet, and were still organising the 2006. We have got some time."

Liverpool Council Chief Executive Sir David Henshaw said the invitation to host the eisteddfod coincided with the city's 800th anniversary.

He added that he expected the eisteddfod council members to consider all points of view fairly.

Flintshire Council said it was preparing a statement on its position on the 2007 National Eisteddfod.