The New Zealand V8 Supercar driver Greg Murphy says he's disappointed at the demise of the Hamilton street race.
April's race will be the last in the city with competition organisers V8 Supercars terminating the seven year deal signed in May last year.
The Hamilton council will be paid $1.25 million in compensation.
V8 Supercars took over the event's promotion this year after the financial demise of the previous promoters.
This year's event suffered with low attendances and corporate sponsorship well below expectations with V8 Supercars suffering a significant loss on the event.
After a proposal to shift the race to a November date was rejected by the Hamilton City Council, V8 Supercars decided to terminate the agreement.
Murphy says given the financial problems surrounding the event the latest decision comes as no surprise.
It could also mean the end of V8 Supercar racing in New Zealand.
There's been an event in New Zealand since 2001 with Hamilton replacing Pukekohe in 2008.
The chairman of V8 Supercars Tony Cochrane says while they will do everything possible to find a new venue there's no guarantee there'll be racing in New Zealand beyond 2012.