Event producer Indigo has however insisted that the ceremony will still go ahead, airing in October this year on a different channel.
Last year's presenter Christine Bleakley, who is locked into an exclusive contract with ITV, will also be replaced.
James Nesbitt hosted in 2008 and 2010, while Alexander Armstrong fronted the first ever show.
Of ITV's decision to cut the Movie Awards, a source told The Sun: "As awards bashes go, last year's National Movie Awards was an absolute stinker."
"It was essentially a big long series of trailers," the insider added. "It's no surprise ITV has axed it as it was utterly embarrassing for them."
The 2011 ceremony, which saw the likes of Johnny Depp and Colin Firth win prizes, attracted only 2.4m viewers in the overnights.
Watch pictures from last year's National Movie Awards below: