The future of the show had been in doubt after Britain's Channel 5 last month confirmed it would stop airing the show.
And on Thursday morning the show's Twitter account said: "We are so sorry to say that after nearly 37 years and almost 9000 episodes broadcast we have to confirm that Neighbours will cease production in June.
"Following the loss of our key broadcast partner in the UK and despite an extensive search for alternative funding, we simply have no option but to rest the show.
"To our amazing, loyal fans, we know this is a huge disappointment, as it is to all of us on the team. We thank you for all your messages and support and promise to end the show on an incredible high. From here on, we are celebrating Neighbours."
The drama about the residents of Ramsay Street has been shown on UK television for more than 30 years and launched the careers of stars including Kylie Minogue, Jason Donovan and Margot Robbie.
Channel 5 said dropping the soap would allow funding to be diverted to original UK dramas.
The longest-running drama series on Australian television, Neighbours initially launched on the Seven network in 1985, but the channel axed it before Ten picked it up the following year and it became an international hit.
In Australia it has been shown on digital channel 10 Peach since 2011 and has been reliant on the UK broadcaster for funding.
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