The London Mela, Europe's largest South Asian festival, will not take place in Gunnersbury Park this year.
The one-day festival has been held in the park, on the boundaries of Hounslow and Ealing boroughs for the last 13 years.
Around 15,000 people attended the annual music and arts extravaganza last September, which was the first time in the event's history visitors had been charged for entry.
But the organiser Remarkable Productions said it was taking a break this summer so it could focus on setting up a new independent trust to manage the mela, following a cut in local authority funding.
It said the new trust, which would be financially independent from Ealing and Hounslow councils, would aim to return in 2017 with the "greatest" London Mela yet.
'2017 festival will be greatest ever'
Julian Rudd, director of Remarkable Productions, said: "The London Mela is in the process of development and reinvention as it marches towards trust status and financial independence.
"It is right that we have a fallow year in 2016 in order to get that right. We are aiming to celebrate the birth of the new independent London Mela Trust in 2017, on the 70th anniversary of Indian independence, with the greatest London Mela yet."
The new trust will also work to produce smaller events as part of a new London Mela Presents programme, due to launch this summer, with support from the Greater London Authority (GLA) and Arts Council England.
'Committed to keeping the event affordable'
It will seek to secure additional funding, through sponsorship, ticket sales and other sources, to make up for a reduction in council grants.
But Remarkable Productions and Ealing Council said the trust would be committed to keeping the event affordable and retaining the same quality and breadth of entertainment for which it had become known.
Ealing Council leader Julian Bell said: "We appreciate how popular the mela has been and that its success has been internationally recognised.
"It will take on a different approach this year, while Remarkable explore how the mela can be improved and become self-funding before bringing it back next year."
