For the first time in its 35-year history, the exhibition will not go ahead in 2010 after major sponsors Integral Energy and Inghams withdrew their sponsorship.

Camden Art Prize committee member and past president Frank Brooking said: ``We're facing the fact that art isn't selling because people are being careful with the way they're spending their money.

``Last year we sold about 30 paintings but there have been years where we have only sold about eight or 10.

``We've never missed an exhibition in 35 years but we just feel that we need to give it a miss next year and come back bigger and better the following year.''

Mr Brooking expects the decision, passed by committee members late last month, will be ``unpopular with the artists''.

``We're all disappointed,'' he said.

``We lost two major sponsors in the last few months and that could be because of the economic climate. If we had them on board we may not have had to make this decision.''

The prize has grown in acclaim since it started in 1974 and draws local and national artists. It attracted a record 425 entries this year.

Bringelly artist Brian Stratton, who won the art prize this year, said he was disappointed to learn the show would not be held next year.

``It's another blow for artists in this climate when galleries are closing and framers have gone out of business,'' Mr Stratton said. ``Now artists will miss out on the show and the art prize. It's been part of Camden for so long I'm surprised the council doesn't take it over.''

Camden Mayor Chris Patterson said last week: ``I can't make any commitment but I'm more than happy to take that back to the council [to discuss].''