The 2012 edition of the Madrid Masters has been cancelled due to the financial crisis and the woes of the Spanish lender that is its main sponsor.

Lee Slattery will not get to defend his Madrid Masters title. (Photo - www.golfbytourmiss.com)

“The Madrid Masters will be postponed until 2013 because of the difficult economic situation,” the Spanish golf federation (RFEG) said on their official Twitter feed.

The Euro 1m European Tour event, won last year by England’s Lee Slattery, is sponsored by Bankia, which required a state rescue worth Euro 23.5b in May.

The rescue prompted Spain to request European aid for its banks and a Spanish court this week opened a fraud case against former Bankia executives.

The tournament had been due to take place from September 20-23 and at a course to be confirmed.

It is the second event this year to be cancelled following the Czech Open that also will not be contested this year.