Melbourne has lost Australian television's biggest annual awards night after the Victorian Government confirmed it would withdraw its funding for the Logies.

The city hosted the first ever event in 1959, when the Gold Logie went to TV legend Graham Kennedy.

While the awards have been held in Sydney on a handful of occasions over the decades, Melbourne has been its traditional home.

The Victorian Government had been providing about $1 million for the event each year.

But it said after "extensive consultation with key stakeholders and a comprehensive event analysis", it would pull the funding for next year's ceremony.

Major Events Minister John Eren said the event was never profitable for the state and it was only funded for sentimental reasons.

Samuel Johnson won last year's Gold Logie. ( AAP: Tracey Nearmy, file photo )

"I think it's time to pass the baton. We're looking at value for money when you spend taxpayers' dollars and you want maximum return on those dollars," he said.

"We just feel we've got to re-evaluate every single event and we've come to the conclusion that though it's been a great partnership over many years, it's time to attract some events that will actually bring lots of dollars to our state.

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"I would say that it's just not worth it anymore. It's the responsible thing to do, and whichever state gets it, good luck to them."

But Opposition Leader Matthew Guy said the awards should stay in Victoria, tweeting that the Logies belong in Melbourne and the small spend was worth it.

Television personality Bert Newton, who is synonymous with the awards, said he was shocked and saddened by the decision.

"They were born and bred in Melbourne, there's something about the Logies that needs to be in Melbourne," he said.

"I know the Logies aren't the most important things on the minds of pollies, but I would like to have been at the meeting where this was decided. They would have obviously discussed it at length for about 30 seconds.

Big international music acts often perform at the ceremony, like One Direction in 2012. ( AAP: Tracey Nearmy )

"Are we going to run the Melbourne Cup in Darwin? I love Darwin but the Melbourne Cup belongs in Melbourne, and so do the Logies."

Channel Nine presenter and Gold Logie-winner Karl Stefanovic said he would boycott the ceremony until it returned to Melbourne.

Mr Eren said the Government had tried to negotiate a solution with the organisers, but it did not work out.

Gold Coast, Tamworth may bid to host

In May, the NSW Government lobbied organisers to move the Logies to Tamworth in 2018, with the possibility of taking it to other regional centres like Dubbo and Albury the following years.

Sorry, this video has expired Tom Tate discussing "tacky" Gold Coast claims

The NSW state member for Dubbo, Nationals MP Troy Grant, voiced his support for bringing the ceremony to his electorate.

"If Melbourne doesn't want it — let's #BringTheLogiesToDubbo," he wrote on Twitter.

But Gold Coast Mayor Tom Tate said his city and the Logies would "go hand in hand".

"It's befitting because it's a tacky industry coming to a tacky city," he said.

"All those superstars on television, why wouldn't they want to come to the Gold Coast and spend their time … relaxing in the high-quality lifestyle and [walking] along the beach?"

Waleed Aly won a Gold and Silver Logie in 2016. ( AAP: Joe Castro )

Comedian Dave Hughes has hosted the event for the last three years, and told ABC Radio Melbourne the event was a local institution.

"Melbourne needs the Logies. It's the only time Richard Wilkins comes to Melbourne, when the Logies are on," he joked.

"It sounds like any government who wants to pay for them can have them.

"I was aware after last year's Logies there was a reasonable chance that it might not be in Melbourne [next] year, depending on if the Government would still tip some money in."