The long-running comedy series, which starred Will Mellor, will not be renewed as the BBC makes way for fresh content, The Mirror reports.
BBC Three Controller Zai Bennett said: "BBC Three is all about giving new writers a chance. It's now time to give that chance to others. I want to thank the production team for creating a warm, cheeky and popular comedy."
The show's creator Susan Nickson joked: "I've had a fantastic time for the last 50 years, but wholeheartedly believe it's right for us all to move on.
"The crew, the fans, the actors and writers have become like family over the life of the show, in that I see them once a year and ask [them] for money. I'm thankful we brought such happiness to a lot of people and a lot of enjoyable rage to many others."
Nickson added: "I'm extremely grateful to the BBC for supporting the show and already have plans afoot for future ventures with the corporation."
She is planning to write another series for the BBC, while Bennett is expected to announce new comedy commissions in the coming weeks.
Former star Sheridan Smith has since gone on to play the lead in the West End version of Legally Blonde.
Watch a clip from Two Pints of Lager and a Packet of Crisps below (Video contains adult humour):