Blast Off, which has run at the Civic and Wulfrun Halls since 1996, will be held on Saturday 8 March, 2014, for the final time as a regular event.
The night will be brought back for one-off occasions and an alternative weekly event will be sought take its place.
Organisers of Blast Off have decided to end the night due to a fall in attendances making it financially unviable.
Mark Blackstock, Wolverhampton City Council's Outdoor Events Manager, said: "Blast Off has been a huge success and we are all very proud of what it has achieved.
"Club nights usually have a shelf life of between 2 to 5 years so to keep going for 18 years and welcome almost one million customers through our doors in that time is phenomenal.
"But the fact is attendances have fallen and the organisers feel it is no longer financially viable for them to run.
"The smoking ban and changes to the licensing laws which meant pubs and bars could open beyond 11pm have had an impact.
"So, while it is a shame to see Blast Off come to an end, we can look back with pride on its success in its heyday and want it to go out on a relative high."
Councillor Elias Mattu, Wolverhampton City Council's Cabinet Member for Leisure and Communities, said: "I am very sorry to hear that an institution of the city's night life is closing after 18 successful years.
"But let me stress that this is purely down to a drop in attendances and has absolutely nothing to do with the council's savings proposals, in light of Government cutbacks."
Blast Off will continue to be held at the Civic Hall every Saturday until 8 March.
- released: Friday 10 January, 2014