Organiser Roseclaim is instead holding RiZE Festival solely at Hylands Park in Chelmsford, Essex.
V Festival had been held at Weston Park. along with Hylands Park, every August since the 1990s.
The first event was at Weston Park in 1999.
Bosses at Weston Park Foundation said the move would financially impact the charity and local area.
But they said talks are already underway with Roseclaim about a 'future project' on the estate next year.
Other events are also being planned by the park for this year.
They include a summer event called Enchanted Glen. It is a trail for visitors using computer technology.
Colin Sweeney, chief executive of the Weston Park Foundation said: “We have been enormously proud to have been home to the former V Festival over the last 19 years.
"The significant contribution that hosting the event has made to the charitable objectives of the Weston Park Foundation and the wider regional economy cannot be underestimated.
"We are very excited about working with Roseclaim on a future project here on the estate in 2019."
Blymhill and Weston-under-Lizard Parish Council chairman Councillor David Maddocks said he was disappointed.
He said a 'significant' fund given to his and Tong Parish Council had supported projects such as the building of a new village hall.
He said: "It [the decision] has been met with great disappointment in this area.
"The majority of people are disappointed, there are a few always in opposition, but there in recent years the disruption has been very small.
"And the money we receive is always welcomed.
"It also gave young people in our area an event each year to look forward to. I know many are disappointed by this announcement."
He added: "I'd welcome any move for the event to come back next year.
Organisers of the V Festival have always been very genereous to Bishop’s Wood and the surrounding areas. As a consequence, many small local voluntary organisations have benefited and their contributions will be missed. Villagers were always consulted and kept informed, and over the years attitudes have been very positive.
Brewood and Coven Parish Council member Jan Jeffries, whose ward is Bishop's Wood, said: "Organisers of the V Festival have always been very generous to Bishop’s Wood and the surrounding areas.
"As a consequence, many small local voluntary organisations have benefited and their contributions will be missed. Villagers were always consulted and kept informed, and over the years attitudes have been very positive.
And David Dixon, a resident in Tong, said the organisers' donation each year supported projects at the village's church, St Bartholomew's Church, which recently had its roof replaced.
Liam Gallagher and Stereophonics will headline RiZE Festival at Hylands Park on August 17 and 18.
The festival used to be called V Festival, but has been rebranded following the end of a sponsorship deal between organiser and Virgin.
Last year's V Festival saw the likes of Pink, Jay Z, Rudimental and Craig David perform.
However, the number of people attending compared to previous years was down around 25 per cent.
Rumours had circulated that it was not returning to Weston Park last month.
South Staffordshire Council, which provides a licence for the event, revealed there was ‘no indication’ the summer festival would not be going ahead.
But organisers kept quiet, only making the announcement this week.