ITV1 has decided to discontinue the musical drama, which failed to be a ratings success for the channel.
The show, which cost £2 million to produce, was created by Strictly Come Dancing judge Arlene Phillips and Take That singer Gary Barlow.
"We thought Britannia High would be an all-singing, all-dancing success - especially having the top names in dance and music on board," a source told The Sun.
"Sadly, the stories of these youngsters vying for their dreams didn’t seem to capture viewers’ imagination.
"The credit crunch is affecting everything, not least TV. A second series of Britannia High was just not viable."
The programme opened to a disappointing 3.31 million viewers in October and later fell to a low of just 2.4 million in its third outing.Britannia High was the second TV outing for young Skins newcomer Mitch Hewer (represented by United Agents ).