Billy McFarland Claims Organizers Have Been Working with Mexico Government on Fyre Fest 2

Billy McFarland and the Fyre Festival 2 team are sticking by the location for the event ... claiming they've been working closely with Playa Del Carmen to ensure the festival happens -- despite the government's claims to the contrary.

Here's the deal ... earlier this week, officials for Playa Del Carmen -- a small town just south of Cancún in Mexico -- wrote a message in Spanish, part of which translates to "There is no existence of a registry nor plans that would indicate such an event taking place in this municipality."

They also add, "... No such event with that name will take place in our city" -- indicating they haven't even heard of the event before.

However, the Fyre 2 team fired back with a social media post detailing interactions they say they've had with the local government in the city ... claiming the two groups have been collaborating since early March.

He also includes a series of screenshots showing alleged paperwork filed with the city ... like what appears to be a preauthorized permit for the event. He also included alleged emails with city officials who appear interested in hosting.

Worth noting ... this is not the first city that has denied having any involvement with Fyre Fest. McFarland originally announced the festival would take place in Isla Mujeres -- an island also near Cancún. However, right around the time Billy says organizers started working with Playa Del Carmen, officials on Isla Mujeres denied the claims.

We spoke with Billy back in February who assured us the event would be massive, and he was committed to making sure this sequel to the trainwreck OG Fyre Festival would go much smoother.