"Now it's big money that rules the games and so small countries like Austria can't compete anymore," Salzburg Mayor Heinz Schaden told The Associated Press in a telephone interview Wednesday after a meeting of city councilors.
"It's definite, that chapter is closed," he said.
Schaden said representatives from all parties at the meeting "declared unanimously" that Salzburg should not bid again.
"It was simply a discussion, but during that discussion no one voiced the opinion that Salzburg should go for it again," Schaden said.
Last week in Guatemala City, Salzburg finished third in the International Olympic Committee vote for the 2014 Games. After Salzburg was eliminated in the first round, the Russian resort of Sochi defeated the South Korean city of Pyeongchang in the final ballot.
Salzburg also finished third and last in the 2003 vote for the 2010 Olympics, which were awarded to Vancouver, British Columbia.
Austrian officials complained last week that they couldn't compete against the high-spending campaigns of the Russians and Koreans.
Heinz Jungwirth, secretary-general of the Austrian Olympic Committee, was not surprised by Salzburg's decision not to bid again.
"It's what we presumed," he told the Austria Press Agency, adding that his committee would "take a look" if other Austrian cities were interested in bidding for future games.
Innsbruck has hosted the Winter Olympics twice, in 1964 and 1976.