MotorSport Vision, promoter of the Formula 2 championship, has announced the series will not run in 2013 after just four years of existence.
The championship, a revival of the former F2 series that ran until 1984, was launched in 2009 as a one-make class using cars built by Williams and powered by Audi engines.
The limited success of the series, however, has forced MSV boss Jonathan Palmer to cancel the championship after only four seasons.
"As the FIA intended, F2 has always provided outstanding value and equality for its competitors," Palmer said in a statement.
"However, it has become progressively clear that the single operating team concept that enables these benefits has compromises that have, overall, reduced its appeal to drivers."
Palmer said the one-make series with cars ran by the organisers was a model that had not simply not worked as expected.
"We and the FIA are in agreement that any future F2 should operate on a more conventional, multi-team basis," he said.
"Other championships at F2's level have also increased their appeal through recent performance upgrades, and it is logical to conclude that in F2's final year grid numbers would reduce, perhaps significantly."
MSV said the termination of the series had been agreed with the FIA.
"The Federation has been pleased to support F2 throughout these four competitive years," the statement quoted the FIA as saying.
"This is a racing series which has introduced many young drivers to motor racing and prepared them for higher challenges.
"The FIA is determined to develop a clear path for young drivers from karting to F1 and therefore reiterates our commitment to single seater racing series."
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