The BBC said that cancelling River City reflected a significant change in audience behaviour away from long-running series and towards shorter runs.
The BBC is concentrating its budget on major drama productions set across Scotland, starting with three new series – Counsels, Grams and The Young Team.
This is on top of returning dramas such as Rebus, Shetland, Granite Harbour and Vigil.
Since the announcement last year, other new dramas from Scotland include Sutherland, Half Man and Mint.
Giving evidence at the Scottish Parliament about BBC Scotland’s drama investment strategy, BBC Scotland’s Director Hayley Valentine said that the “cost per viewer” of producing the show was now much higher as audience figures had declined.
She told Holyrood’s culture committee that she didn’t take the decision to end the show lightly.