The Steam Packet Company says it's disappointed a deal it's offered the government looks set to be turned down.
Infrastructure Minister Ray Harmer will put the deal to Tynwald as it sits this week - but will recommend the court rejects it.
The proposals would have seen the firm extend the linkspan user agreement until 2041, effectively securing a monopoly on ferry services.
In return, it promised to replace its vessels early as well as guarantee a backup freight ship and sailings to Liverpool.
In a letter to the minister on the eve of the court's July sitting, Steam Packet Chairman Robert Quayle says the company thought Mr Harmer would back its offer.
But he says seeing the item recommended for refusal is "most regrettable".
Mr Quayle says he feels the company's position has been misrepresented in the document which will be put before Tynwald members.
And he adds he believes the proposal is in the best long-term interests of the government and the travelling public.
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