Promoter MCD said the popular summer festival will be taking a break in 2012, before returning the following year.
Rumours had been circulating for some time that the festival would not go ahead next year.
MCD has instead opted to stage up to six concerts in the Phoenix Park in July, which has a capacity of 45,500 people.
The Stone Roses are already confirmed to play in the park this summer on July 5, the day before the Oxegen festival was due to begin.
In a statement yesterday, the promoter initially said it would be announcing details for Oxegen 2012 at a later date, but this was later updated to confirm that the festival would be taking a year off.
“Oxegen, like Glastonbury, is taking a year off in 2012 and will be back July 2013. Wishing everyone a very happy Christmas & peaceful new year. Keep rockin’ in 2012 and we will see you in 2013,” said the statement.
Oxegen began in 2004 and became established as Ireland’s premier music event, hosting some of the biggest acts in the world.
It was held at Punchestown Racecourse and regularly attracted sell-out crowds of 80,000 at its height.
However, the numbers had been declining in recent years, with 58,000 people attending the Friday of last year’s event and 70,000 attending the Saturday and Sunday. as the recession took its toll on the 18 to 25-year-olds that made up the bulk of the audience.