This year’s race, the halfway point in the season, takes place on Sunday (12.30pm).
British Racing Drivers’ Club (BRDC) chairman John Grant says: “This decision has been taken because it is not financially viable for us to deliver the British Grand Prix under the terms of our current contract.
“We sustained losses of £2.8 million in 2015 and £4.8 million in 2016, and we expect to lose a similar amount this year.”
Grant says the iconic venue, which has the biggest turnout of any race on the calendar, was the only circuit in Britain that could host the race and hoped a more sustainable deal could be reached over the next three years.
Meanwhile, home crowd favourite Lewis Hamilton took some time off as drivers took to the streets of London to promote the event on Wednesday.