"Representatives of the Turkish company have exhausted the whole confidence credit given to them. We have given them plenty of time to resolve the existing problems for work to continue smoothly but we see that they have failed to make use of it. Now the city is taking over the initiative. We need to ensure that the stadium construction continues and is finished successfully," Kaunas Mayor Visvaldas Matijosaitis said in a statement.
"A bit of time will be needed to hold the tender for a new contractor but we will do everything to ensure the unavoidable pause in work is as short as possible," he said.
The contract is being cancelled after 52 Turkish citizens reconstructing the stadium went on strike over pay arrears late last year.
The Kaunas authorities signed the contract, worth 34.95 mln euros, for reconstruction of the Darius and Girenas Stadium with Kayi Construction in June, 2018.