The hit Australian soap first aired on United Kingdom television screens in 1986 on BBC One and moved to Channel 5 in 2008 after the broadcaster bought it off in an expensive deal.
Apparently, if an agreement isn't reached, Neighbours could either move to a new channel or be axed from British television all together.
The insider continued: "But the failure to reach a deal is being blamed on Channel 5's new American owners Viacom for refusing to sign off on the figures and not understanding the cultural importance of the show in the UK".
Neighbours is now one of the most watched programmes on Channel 5.
Show makers Freemantle Media are reportedly failing to negotiate a deal to keep the show on Channel 5.
Kate wrote that the show is "a huge part of British culture", adding that it should be kept on our screens due to its "massive United Kingdom following".
Fremantle Media Australia has hit back at claims the show will be cancelled after 31 years of airing on British TV, after reports surfaced that Channel 5 were dropping the programme.
"Channel 5 really want to keep the show".
"We, the fans, are petitioning to Channel 5 and Fremantle Group to keep Neighbours on our screens!"
The series made stars of Kylie Minogue, Guy Pearce and Margot Robbie and follows the residents of Ramsay Street, in the fictional Melbourne suburb of Erinsborough.
'All I can say is our relationship with our broadcasters at Channel 5 and (Australian network) Channel ELEVEN couldn't be better and couldn't be stronger.
"Neighbours" fan Kate Winrow has set up a petition on Change.org, which is already nearing its 10,000 signature target, just 24 hours after launching, with more around 8600 supporters at the time of writing.
Neighbours, which has been running for 33 seasons, has always been hugely popular in the United Kingdom and continues to pull in around one million viewers per episode, according to the Broadcasters' Audience Research Board.
The soap following the lives of the residents of Ramsay Street first aired in the United Kingdom in 1986.