"We are in urgent contact with the United Kingdom government and Dundee to understand the potential implications of this situation and to establish what action the United Kingdom government is going to take to address it".
The European Commission has announced that Britain will not be allowed to host the European Capital of Culture in 2023 as previously planned.
A DCMS spokesperson said it was disappointed the decision had not been made before the bids had been made.
After Brexit, UK is no longer able to take part in the bidding, and in October, DCMS said it was "ready and fully committed" to host the European Capital of Culture in 2023, for which UK cities were competing with rival bids in Hungary.
Nottingham, Leeds, Milton Keynes and Belfast/Derry also wanted to become the capital of culture.
After all, Britain will not be leaving Europe in March 29, 2019.
A spokesman for Dundee City Council said the local authority was "urgently" seeking clarification on the matter.
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They added that the United Kingdom wants to continue work with Europe to "promote the long-term economic development of our continent" and added the department will carry on working with those in the United Kingdom who made bids.
Labour's Tom Watson, the shadow culture secretary, some cities had already spent up to $665,000 on their bid submissions.
"Being the Capital of Culture had a transformative effect in Glasgow and Liverpool, fuelling regeneration, tourism and community pride. It seems spiteful for Brussels to take away that opportunity now".
A joint bid by Belfast and Londonderry to hold the title for 2023 was being considered, but a new ruling means no United Kingdom city can receive the accolade after the United Kingdom leaves the European Union in 2019.
The accolade rotates around different European countries and it was Britain's turn to be given it again in 2023. The UK voted narrowly by a margin of 52-48 to leave the European Union in a referendum in June 2016, but Scotland voted by a wide margin to remain.
Dundee's chances of winning the title were effectively wiped out with the stroke of a pen, just days before a delegation was due to head to London to pitch their bid to be named the UK's entry.
"It's a sad irony that one of the key drivers of our bid was a desire to further enhance our cultural links with Europe".