The spokeswoman said the guarantee from the money needed to come from the councils, and not Merseytravel.
"We have not yet received the guarantees we are looking for from the Merseyside authorities. We are waiting to hear from them.
"They are offering a capped guarantee, but we are looking for a commitment to provide any funds that might be necessary to complete the scheme," he said.
The Daily Post understands that the Prime Minister's office is now personally involved in the negotiations following Tony Blair's meeting with local MPs and council leaders last week, and was involved in talks between London and Merseyside on Tuesday.
One source close to the Town Hall says officials are becoming frustrated by the Government's insistence.
He said: "Some signs are positive, and we left Monday's meeting feeling confident, but there is always another hoop that we have to jump through.
"It is illegal for councils to agree to limitless funding. Knowsley and Liverpool are already underwriting £24m, which we already think is unnecessary. There is no chance that any excess costs will go beyond £24m.
"What is wrong with Merseytravel agreeing to cover it. The company is in a better position than a local authority is to come up with the money.
"They keep saying that is not enough and we are not in a position to do any more. We are ready to go, and as far as we are concerned we have everything we need."
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