A meeting of the Irish music organisation Comhaltas was held in the city on Wednesday night to discuss the issue, but members could not agree.
Sinn Fein's Martina Anderson said some County Derry members are opposed to hosting the event in 2013 because of the title the UK City of Culture.
"It is deeply disappointing," she said.
"My understanding is that County Derry branches are against it and the city branches are for it."
The fleadh attracts a quarter of a million people and City of Culture organisers are pushing to bring the event to the city next year.
Derry's bid cannot proceed without the local delegates' approval.
If the fleadh is awarded to the city it will be the first time it will come north of the border.
BBC News - Sinn Fein warns Derry could lose out on fleadh