The Melbourne Racing Club and Racing Victoria are at odds over the funding for the Blue Diamond Stakes.

Last October, RV announced a $500,000 prize money increase for Victoria's only Group One race for two-year-olds, bringing it to $1.5 million.

But when second declarations were released this week, the MRC said the race would be worth $1.4 million because of less than anticipated funding from RV.

Greg Carpenter, RV's general manager of racing, has countered by saying the race will be worth the advertised amount.

He said the MRC had collected $700,000 in nomination and acceptance fees from owners, with third and final declarations still to be taken.

Carpenter said RV and the MRC would continue discussions over the prize money.