Bermuda is in pole position to host the 2013 Island Games following Prince Edward Island's shock withdrawal from the race.

Prince Edward Island pulled out of the running after its Government refused to financially support or back its bid, leaving Bermuda as the only Island competing for the biennial event.

The Canadian province's forced withdrawal serves as another major boost for Bermuda whose bid received the stamp of approval from the Island Games Association's (IGA) executive last month.

It is believed the event would bring in an estimated $10 million in revenues to the Island with a cost of $2.1 million. It would also attract more than 4,000 international athletes and visitors, as well as more than 300 media organisations.

However, Jon Beard, chairman of Bermuda Island Games Association (BIGA), has warned against popping the champagne corks prematurely with Bermuda still having to convince the member Islands that their bid is worthy of their votes.

"We don't want to get too excited and start jumping up and down just yet," he said. "Just because Prince Edward Island has withdrawn its bid it may not mean we automatically get the Games.

"We will still have to go and present the best bid and convince them to award us with the Games. Obviously we're very pleased that we're the only Island presenting a bid, but we must remain professional and paint Bermuda in the best possible light."

Bermuda will have to present its bid at the IGA's annual general meeting in Aland on June 28 when the member Islands will cast their deciding votes.

Jorgen Pettersson, chairman of the Island Games Association, said it was not the first time a single competitor had emerged from the bidding war and warned Bermuda to "stay on their toes".

"It is disappointing that there will no longer be two competitors for the 2013 Island Games, but it is not the first time this has happened," he said. "In 2001 the Isle of Man, 2003 Guernsey and 2005 Shetland all had to present bids despite their being no other challengers.

"They all received the Games but we have to be professional about this and Bermuda will still need to keep on their toes, even though the members only have one bid to vote for."

The Island Games Association of Prince Edward Island sent out a press release on Monday stating that its bid had been withdrawn.

It read: "After many months of work by this volunteer organisation, and after securing the support of Premier Robert Ghiz and the Government of Prince Edward Island on our formal submission of December 24, 2007, we, in good faith, forwarded our official bid.

"On February 19, the Island Games Association of Prince Edward Island Inc. received correspondence from the deputy minister of community, cultural affairs and labour, Ms. Tracy Cutcliffe that the Government of Prince Edward Island would not continue to offer their support for this bid and would not provide any financial or any other kind of support to our bid.

"This came about after a series of discussions and correspondence on responsibility for the bid process.

"The Island Games Association of Prince Edward Island Inc. made every effort to secure support through other avenues and, as recent as April 2 met with the Premier of the Province, The Hon. Robert Ghiz, to convince the Government to continue their support of our bid.

"It was to no avail; the Premier restated their position of withdrawal of support."

Earlier this year delegates from IGA visited Bermuda and said the Island's sporting infrastructure was already capable of hosting its first Island Games. The deadline to enter a bid to host the Games was last December.

Bermuda's largest ever contingent of athletes scooped –40 medals at Rhodes during last summer's showpiece.