Woods has played in the event only once, in 1998, when Mark O'Meara beat him 1-up in the final.
New sponsor HSBC bank took over the tournament in March and hoped Woods would lead a field of the top 12 ranked players at Wentworth.
But Woods, winner of last week's Western Open for the third time, has told organizers the dates pose a problem.
'He has not made a decision yet,' HSBC spokesman Richard Beck said Tuesday. 'We are very much in negotiations with IMG, Tiger and his team.'
Woods has a 'long-standing, nonplaying commitment' and has promised that if he can't play this year he would like to do so next year, he added.
This year's championship will offer the second-richest prize in golf, a winner's share of $1.56 million.
The field is based on performances in the four majors. Masters winner Mike Weir and U.S. Open champion Jim Furyk already have been offered places.