Derry City and Strabane District Council has received formal notification this week from Pet FBI that they will not be providing the dog shelter service at the Pennyburn Industrial Estate from next week.
The decision was made despite extensive discussions between Council and the charity to get them to continue with their current lease.
Council have reassured the public that it will continue providing a dog kennelling service at this facility for stray dogs collected by the dog wardens.
A spokesperson for Derry City and Strabane District Council said it was disappointing that the charity could no longer provide this much needed service.