India's cricket board (BCCI) are refusing to sign the Members' Participation Agreement (MPA), covering major tournaments for the period 2007-2015.
ICC president Percy Sonn gave the BCCI a deadline of next Tuesday to notify the world governing body of objections to the contract.
"If the BCCI fails to agree to the terms of the MPA, it will of course mean that they could not continue as one of the joint hosts of the ICC Cricket World Cup 2011, thus putting the entire tournament in jeopardy," said Sonn on Wednesday.
"Having said that, we hope agreement can be reached and that common sense will prevail."
India are scheduled to host the 2011 World Cup final with Pakistan, Sri Lanka and Bangladesh.
The new members' agreement is set to run from 2007-15 and cover major events, including two World Cups, three Champions Trophy tournaments and the first two Twenty20 World Championships.
But the Indian board this week announced they had problems with the agreement's content.
Sonn said: "Six months ago we circulated the MPA for our events from 2007-2015 to our members for comment and over the subsequent months we have had extensive and fruitful negotiations with many of our Members that have helped us develop the contents of the agreement to suit our mutual needs.
"It is thus very disappointing that the BCCI has only recently been able to review the agreement and raise its concerns.
"Our other Members have indicated that they are in a position to sign the MPA and the process is moving forward rapidly.
"This means that, unlike the other members' concerns which were given due consideration over several months, the BCCI will only have a limited opportunity for its concerns to be presented and considered."
Sonn said that the new MPA was more flexible and addressed all areas of concern raised by Indian players in previous ICC events through to 2007.
He added that ICC events were a dominant source of revenue for the majority of the 97 members across the globe and it would be disappointing if India's delay held up the process.