"It's sad, but funding priorities make it so," senior broadcast journalist, Nina Robinson, who ran the service, told Journalism.co.uk.
The Your Story service invited participants from around the world to send in ideas for stories and news reports, or personal stories, photos, audio and video.
Individuals were encouraged to pursue report ideas and were provided with recording equipment, training and advice. The results were then published online, and/or broadcast on the World Service.
Robinson, who announced the decision on Twitter, will now be working on an Assignment programme in July, making documentaries as part of a new project for 2012, and also working on The World Today.
She will also meet with BBC World Service commissioner, Anne Koch, 'to discuss how we move forward with citizen content'.
"Most content is still coming in through the Have Your Say page on the BBC News site," Robinson added.
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