Sir Elton John performs in the 2010 Electric Proms. Photograph: Brian Rasic/Rex Features
BBC Radio 2's Electric Proms has fallen victim to the corporation's latest-round of cost-cutting with last year's event, featuring Robert Plant, Neil Diamond and Sir Elton John, set to be its last.
The Radio 2 controller, Bob Shennan, said the five-year-old spin-off from the classical music Proms was being axed because of efficiency savings.
Shennan added that he was "disappointed" to lose the annual festival but pledged more high quality live music programming in an "alternative, more cost-effective way".
The BBC director general, Mark Thompson, is looking to make 20% of savings over the next four years, higher than the original target of 16% imposed by the freeze in licence fee funding, to free up more resources for programming and technology.
Last week Thompson unveiled up to 650 job cuts at the BBC World Service as part of these cuts. More than 2,000 job losses are expected across the corporation in the coming years as the BBC tightens its belt.
Shennan said: "In the current climate, we are faced with making difficult decisions, including how best to deliver high-quality live music programming throughout the year in light of continuing efficiency savings.
"I feel that Radio 2 can achieve the same impact of the Electric Proms in an alternative, more cost-effective way. I'm disappointed that the lifetime of Electric Proms has come to an end, but very proud of its fantastically rewarding run of creating new moments in music for the past five years."
The Electric Proms was launched in 2006 as a modern music equivalent of the Proms, promising a "celebration of new and innovative musical styles", featuring James Brown, Nitin Sawhney and Damon Albarn's The Good, The Bad & the Queen.
It was broadcast over a wide range of BBC outlets, including Radio 2 and 6 Music, which Shennan also oversees.
Jeff Smith, head of music for Radio 2 and 6 Music, said: "Radio 2 remains as committed as ever to live music programming, and we will replicate the spirit of Electric Proms within the live music schedule.
"In addition to Electric Proms last year, Radio 2 featured live performances ranging from Paolo Nutini performing in Paisley to Paloma Faith at the Cheltenham jazz festival; Scissor Sisters performing live on Ken Bruce's mid-morning show to Bryn Terfel singing Christmas classics at the Mermaid theatre for Friday Night is Music Night."
Radio 2 broadcast an exclusive live Manic Street Preachers gig from their home town of Blackwood in Wales last week, later made available on-demand online and on digital TV.
Smith added: "We intend to create more of these special moments throughout 2011. It's also our ambition to work with BBC2 again very soon as the radio/television/online offering was hugely enjoyed by listeners and viewers."
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The BBC have announced they are to axe annual music festival  from their schedule for financial reasons. The festival first took place in October 2006. The 2011 event will not go ahead, with last year's festival being the last.

, controller of BBC Radio 2, said he was "disappointed" with the decision to cancel the festival. He said "In the current climate, we are faced with making difficult decisions, including how best to deliver high-quality live music programming throughout the year in light of continuing efficiency savings. I feel that Radio 2 can achieve the same impact of the Electric Proms in an alternative, more cost-effective way. I'm disappointed that the lifetime of Electric Proms has come to an end, but very proud of its fantastically rewarding run of creating new moments in music for the past five years."

During the festival's five year run it has featured performances from stars such as Elton John, , and .

The decision to axe the festival comes at a time when the BBC are planning a 20% savings cut. Last week BBC director general  announced 650 job losses after dropping five languages from the .