Bingley Music Live festival will not be held this year after running at a £300,000 loss in 2018, organisers have said.
The council-run three-day annual event has attracted up to 15,000 people, with artists such as The Charlatans, Happy Mondays and Chic gracing its stage.
But it went £300,000 over budget last year, Bradford Council confirmed.
In a statement, the authority said it would "explore different operating models" to limit future financial risk.
One of the options includes "the potential to work with partners to stage the event", it said.
Steve Hartley, strategic director of place at Bradford Council, said: "Unfortunately we have had to take the difficult decision to take a year out of Bingley Music Live this year.
"It is not a decision that we have taken lightly, but we feel that we need to take a year out to take stock of the event's organisation.
"In these difficult financial times for councils up and down the country, we cannot afford to lose money on the event."
Last year, the festival's headliners included Noel Gallagher's High Flying Birds, Shed Seven, Jake Bugg and The Cribs.
Mr Hartley said the council would give £20,000 to Bingley Chamber of Trade to run events in the town this year "to support the local economy".
"Taking a year out will allow for the delivery in 2020 of a well-planned, sustainable festival that provides a great experience for visitors to and residents of the district."
The festival began in the 1990s under various guises. But in 2007, Bradford Council took over the running of the event, held at Myrtle Park, and renamed it Bingley Music Live.