This year's Notting Hill Carnival steel band competition will not be held in Hyde Park due to a lack of funds.
Organisers said the Panorama event on 28 August would be held in Horniman's Pleasance Park instead as the budget had been cut from £150,000 to £30,000.
Carnival director Chris Boothman said this would make it more difficult to find sponsors for the contest.
The Panorama, which began in 1978, is one of the biggest steel band competitions in the UK.
The event has always been held in Horniman's Pleasance Park in Kensal Green, but was moved to Hyde Park in 2006 when former mayor Ken Livingstone wanted an event in a central London location.
Organisers said they had to move as this year the Greater London Authority has cut the budget for the event from £150,000 to £30,000 and the running costs alone for Hyde Park are £100,000.
Mr Boothman said: "It's been a really tough year in terms of trying to get money out of people and we have had a grant aid cut which means that Panorama can't take place in Hyde Park.
"But despite that we are still looking to forward to putting on one of the best carnivals there's ever been.
"The problem would be that having it on the street we are not going to be able to showcase in the way it deserves and we may not be able to raise the kind of sponsorship on the back of it as we should."
About one million people are expected at Europe's biggest street party, which is held over the August Bank Holiday weekend.
More than 50,000 drummers and dancers in elaborate costumes will participate in the parade on 72 floats.
The street party began in 1964 to showcase Caribbean culture.
For the second year running the parades will begin at 0900 BST with the last float crossing the judging point by 1830 BST.
Music will also be switched off within two hours of the last float to prevent revellers from "lingering in the area".
The timings were brought forward after revellers clashed with police in 2008.
The carnival has also asked members of the public to volunteer.
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