The event, which was launched originally in 2004, will return in 2013, according to a statement issued on the Oxegen website by the promoters MCD. The Glastonbury Festival regularly takes a break, in effect to renew itself – so the festival is not alone in adopting this strategy.

"Oxegen, like Glastonbury, is taking a year off in 2012 and will be back July 2013," the full statement reads. "Wishing everyone a happy Christmas and peaceful new year. Keep rockin' in 2012 and we will see you in 2013."

Speculation regarding plans for the event had intensified in recent weeks. With Oxegen's 'sister' festival, T In The Park, happening on the weekend of July 6, 7 and 8 and The Stone Roses announced as headliners there, the assumption had been that the band would be among the Oxegen headliners. However, all of that changed when The Stone Roses were announced for a concert in The Phoenix Park on Thursday July 5 – effectively the beginning of what would have been the 'Oxegen weekend'.

Promoters MCD had recently issued a statement dismissing suggestions that Oxegen was moving to the Phoenix Park. "There is no way that you could replicate the Oxegen experience in the centre of Dublin," one industry insider told Hot Press. "There is the opportunity to do something completely different in Phoenix Park and doubtless MCD will be exploring all of the possibilities – but Oxegen Lite it will not be."

However, with MCD having applied for a license to run up to six gigs in Phoenix Park, it is possible that other leading T In The Park acts might play headlining gigs there. Watch this space.

The decision clearly reflects the more difficult economic climate of the moment. But there is bound to be speculation as to whether Oxegen will return to its most recent home in Punchestown – or if the promoters will look elsewhere for a venue.

"It is a huge loss to Naas, in terms of trade," one industry insider said. "And it is also a big loss to Punchestown. Some estimates have put the value to the local economy at 60 million. But if there is a more cost effective place to do the event, then a promoter would have to look at that very closely. Certainly taking a year out enables MCD to take a fresh look at all of that. It will be very interesting to see how it develops."