The campaign by London’s National Gallery and National Galleries of Scotland (NGS) to secure Titian’s Diana and Callisto has suffered a blow following the announcement by the Scottish government that it will not contribute towards the purchase.

The institutions have until the end of 2012 to raise £50m for the painting, which is owned by the Duke of Sutherland.

“Over the coming year, the galleries will be exploring ways to achieve this, for example, in discussions and through approaches to grant-making trusts and individual supporters,” said an NGS spokeswoman.

A Scottish government spokesman reportedly said that with a 57% cut to the culture portfolio capital budget over the next three years, no additional funds are available for major purchases.

In 2009, the NGS and National Gallery teamed up to buy the companion piece, Diana and Actaeon, for £50m.

The NGS contributed £4.6m towards the acquisition with £12.5m provided by the National Gallery, £1m of which was grant-in-aid. The Scottish government pledged £12.5m, the National Heritage Memorial Fund donated £10m, the Art Fund gave £1m and the Monument Trust contributed £2m.

The Monument Trust and the Art Fund are in talks with the National Gallery about Diana and Callisto. 

Meanwhile, a spokesman for the Department for Culture, Media and Sport said: “We have been in discussions with the National Gallery about how we can support the purchase of Diana and Callisto, but for the time being, those discussions remain confidential.”

In 2009, questions were raised about the deal’s terms, especially about assurances for the continued loan of the remaining 26 Bridgewater paintings owned by the duke, which have hung at the Scottish National Gallery in Edinburgh since 1945.

However, the NGS spokeswoman added that this arrangement would not be affected by the possible purchase of Diana and Callisto.