The Featherston proposal was inspired by this piece.
Mr Jervis said Trust House, with whom sculpture supporters have been in discussion, had said they would not fund the proposal "at this time ... so we'll go back in due course".
The camp trustees were due to meet yesterday and discuss other funding options and "putting [the plan] on a more formal footing" with South Wairarapa District Council.
There were also issues with the space set aside for the monument in the current plan on the square - which the group is hoping to renegotiate with council.
"One of the things we wanted was to put it on a more formal basis," he said. "I do know the council wants to start down the track of building the square."
Mr Jervis said it was "100 years since the opening of the camp in January" and it would be good to have it complete for the anniversary.
The group was "not entirely satisfied" with the space it had been allocated in the current square plan, given "what we are wanting to do is quite a significant artwork".
Securing the services of Dibble had been integral to the proposal from the start, Mr Jervis said.
"The idea was they have that [sculpture] over there, and we have this over here."
Most of the soldiers who left Featherston headed for the Western front, which brought an obvious connection to the Hyde Park work, he said.
"So we were pretty keen to get [Dibble] on board."
He stressed the sculpture was "not a war memorial - Featherston already has one of those", but honoured the town's wartime contribution in hosting the training camp on its doorstep.