The New Zealand leg of the trans-Tasman festival, which has been a staple event for Kiwi music fans since 1994, is no longer financially viable, festival organiser Ken West said.
A message on social networking site Twitter from Big Day Out Auckland on Wednesday evening confirmed the axing of future Auckland festivals.
“This year will be New Zealand’s last Big Day Out,” the message said.
“Come party with us this Friday. It’s been an amazing 18 years here in Auckland.”
The festival’s Australian shows would continue, 3News reported.
The 2012 Big Day Out, which will be held at Mount Smart Stadium, has been downsized for financial reasons.
There will be just one main stage, instead of two, and fewer smaller stages.
Ticket sales have been sluggish and fans are being offered a deal where they get one free ticket when they buy four tickets.
This year’s festival has been plagued by controversy, with hip hop star Kayne West removed from the line-up and rap act Odd Future axed after complaints about the group’s homophobic lyrics.
Among those performing on Friday are grunge act Soundgarden, indie rockers Kasabian and Kiwi songstress Kimbra.