The members of one of Australia's most-loved bands, Powderfinger, have this morning announced they will quit the music business.

The band, led by frontman Bernard Fanning, told a crowd of media in Sydney that they would hit the road on their biggest tour ever, before disbanding.

Fanning read a prepared statement: "The Sunsets tour will be Powderfinger's last ever run of shows.

"We have decided, after much deliberation and agonising, that after this final tour we will call it a day as a recording and touring band.