RYE Harbour looks like missing out on a scheme that would see the area getting financial assistance from the EU.
Rother Council leader Carl Maynard expressed his dismay at the Government failing to include the area in its draft proposals.
Rye Harbour is seen as the key to unlocking hundreds of high quality jobs in the Rye area.
Gaining Assisted Area Status would mean small businesses and large enterprises would become eligible for special government allowances to try to encourage more employment.
The Government is now consulting on its draft proposals, which include areas of Bexhill and Hastings.
Cllr Maynard said: “Rye Harbour offers significant business growth opportunities and has potential to accommodate 35,000 square metres of commercial floorspace and provide more than 1,000 jobs.
“Being given Assisted Area Status, along with investment currently being made, would greatly benefit the future prosperity of the area.”
Cllr Maynard called for members of the public and business community to respond to a government consultation on the proposed assisted areas, supporting the inclusion of Bexhill and Hastings and calling for Rye Harbour to be included.
The public consultation runs until Friday, February 7 and the final Assisted Area map will be submitted to the European Commission for approval in March.
Colonel Anthony Kimber, vice chair of the Rye Plan Steering Group, said: “Rye Harbour has huge potential to create jobs and employment.
“We have held talks with Rye Wharf.”