The Bafta award-winning drama, which is made by ITV but broadcast on BBC1, began its third series on Monday but McGovern said there will not be a fourth.
He said the programme has fallen victim to cuts made by ITV's Manchester drama department and claimed that the broadcaster decided it was not making enough money.
McGovern said in an interview on BBC Radio 4: "It's so sad - one of the best dramas ITV has ever made and it's gone."
He said that he has decided not to try to keep the drama going by having it made by another producer.
He said: "I wouldn't want to, it belonged there (at ITV Studios). All the people have gone. You live and breathe with people you walk into busy rooms and see people working hard, the casting, the make up, the wardrobe even the receptionists, and the next minute they are all gone."
McGovern said the cuts at Manchester's drama department may have contributed to the departure of ITV executive chairman Michael Grade, who had been tasked with reviving the fortunes of the commercial broadcaster.
He said: "It's finished now because ITV have closed down that drama unit. I am sure that's why Michael Grade left because it was a content-led revival, he said, and they have closed down the producers of the best content."
The Street features stories about the residents of one street and is filmed on location in Rock Street, Higher Broughton, and other parts of Salford and Manchester.
It has won two International Emmy Awards and took the Bafta for Best Drama Series for the second year running last year.
Jimmy McGovern
Quote - It's finished now because ITV have closed down that drama unit
The third series continues the show's record of attracting the cream of British acting talent, with Timothy Spall, Bob Hoskins, Ruth Jones and Anna Friel among the cast.
ITV is planning to make 600 staff redundant in London, Manchester and Leeds.
A spokeswoman for the BBC said: "This is a decision Jimmy McGovern has taken as a result of recent changes at Granada. We respect that decision and we are currently in talks with him about future developments. We are very proud to be screening the third and final series of The Street, which started last night with 5 million viewers tuning in."
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Showing comments 1 to 12 and replies | View All
nyb, ex manc (14/07/2009 at 16:09)
Laura Norder, Didsbury (14/07/2009 at 16:09)
Soaps, reality shows and very little true drama, appear to be the order of the day... and Auntie Beeb is in danger of following the trend.
Fortunately, ad revenues are down and so maybe, some time soon, ITV will have to start charging viewers to 'tune in'... that will be fun. It will cost me nothing.
'Free' TV is coming to an end - get used to paying.
Ace , manchester (14/07/2009 at 17:16)
Guten Tag, Manchester (14/07/2009 at 17:26)
Lower Broughton Soul, "In 76, oh yes it's true......" (14/07/2009 at 18:12)
Clown
Ace , manchester (14/07/2009 at 21:01)
Mcfcloyal (16/07/2009 at 11:40)
Mr Manchester (16/07/2009 at 13:13)
Mind you, Britains Got Talent fits the bill...
Cavalier Jackson, Tameside (17/07/2009 at 12:35)
surely his jibe at united is'nt beause he's a scouser but just a reflection of how most people think about your team. As for your comment that it is rubbish Ace, surely that's a little harsh.
Cavalier Jackson, Tameside (17/07/2009 at 12:44)
once upon a time your snobbery would have offended me but these days I realise that your comments are nothing more than high falutin. Your pomposity amuses me, get a life
Stu it Right, Manchester (17/07/2009 at 15:45)
Oh those ivory towers in Didsbury eh!
Michael Whitby (27/07/2009 at 10:03)
Jimmy McGovern creates great drama's about issues that concern REAL PEOPLE, and it will be ITV's loss, not Jimmy's. The downside to this is that Jimmy MAY get the BBC to produce his drama - God forbid! I can't see Jimmy accepting the BBC's PC nonesense.
He would be better off writing for the big screen, with a cast iron contract that says nobody can tell him what to put in his drama's. He will NOT get this with the BBC, as the Beeb is far too busy trying to propagandise the British people into accepting the lies of the Political Class.
Whenever there is a serious issue to discuss, it is overshadowed by girlie pics and celebrity gossip, and people wonder why Britain is going to the dogs!
If ITV or BBC replace The Street with reality programmes, I will NOT be watching them, as the clowns that watch this sort need their heads examining.