This year's Notting Hill Carnival steel band competition will not be held in Hyde Park due to a lack of funds
Organisers said the Panorama competition on 28 August would be held in Horniman's Pleasance Park instead.
Carnival director Chris Boothman said this would make it more difficult to find sponsors for the contest.
The Panorama, which began in 1978, is one of the biggest steel band competitions in the UK and is held in the run-up to the parades.
Mr Boothman said: "Its been a really tough year in terms of trying to get money out of people and we have had a grant aid cut which means that Panorama can't take place in Hyde Park.
"But despite that we are still looking to forward to putting on one of the best carnivals there's ever been.
"The problem would be that having it on the street we are not going to be able to showcase in the way it deserves and we may not be able to raise the kind of sponsorship on the back of it as we should."
About one million people are expected at Europe's biggest street party which is held over the August Bank Holiday.
More than 50,000 drummers and dancers in elaborate costumes will participate in the parade on 72 floats
The street party began in 1964 to showcase Caribbean culture.
For the second year running the parades will begin at 0900 BST with the last float crossing the judging point by 1830 BST.
Music will also be switched off within two hours of the last float to prevent revellers from "lingering in the area".
The timings were brought forward after revellers clashed with police in 2008.
The carnival has also asked members of the public to volunteer