The event, which showcases sports like skateboarding, BMX biking, Rallycross and motocross, has place at Austin’s Circuit of the America’s (COTA) motorsport facility each year since 2014 and this summer’s event is due to be held in the city in Texas from June 2 until 5.

Austin had been due to stage the event again in 2017 but ESPN decided to end its agreement with the city one year earlier than planned and seek a new host. 

The Austin American-Statesman newspaper reported that ESPN took the decision not to remain in Austin due to concern over possible recalculations of the Texas Major Events Trust Fund that has been used by the COTA to help underwrite the cost of the annual Formula One race on the site.

The fund’s $25 million (£18 million/€23 million) outlay to COTA has been reduced to $19.5 million (£14 million/€17.5 million).

The X Games received $1.1 million (£778,000/€985,000) in state incentives for the 2014 X Games, according to city documents.

ESPN said it is “actively engaged” with cities interested in hosting the Games and is inviting other interested parties to enter the bidding process.

The successful bid will take the hosting rights to successive Games in 2017 and 2018.

We’ve been honoured to call Austin home of the X Games since 2014 and are proud to have run world-class competitions for athletes, hosted amazing musicians for our fans and sponsors together with the Circuit of The Americas," Tim Reed, vice-president of the X Games, said.

“We thank COTA, the City of Austin and State of Texas for their support, and look forward to an amazing final X Games Austin event this June.

"Looking to the future, we’re enthusiastic to identify the next X Games host city and continuing to improve and bring the franchise to new locations and fans.”

The summer X Games has taken place in a total of nine different cities around the world in its 20-year history, including various other locations in the US such as Philadelphia in 2001 and Los Angeles in 2013. 

COTA chief executive Bobby Epstein claimed the reason that ESPN had decided to seek a new venue was because they wanted to hold the event at a different time of the year. 

“It was great having X Games in Austin, and we’re glad the Circuit of The Americas could host them, but it just didn’t make economic sense to continue," he said.

"For ESPN, it’s certainly optimal to hold the event when X Games programming doesn’t conflict with major sporting events such as the NBA playoffs and moving the event to August would likely prove less than ideal. 

"We’re pleased that many Texans got to enjoy the fun and competition that the X Games delivers and know the event earned many new followers. 

"ESPN is a great organization, with many wonderful people, and we’re glad to have had the opportunity to work with them.

"I hope everyone comes out June 2-5 and shows their appreciation. 

"ESPN is rightfully proud of their X Games franchise, as it has – for many years – brought great entertainment to millions of fans.”

Among the cities which have already expressed an interest in replacing Austin is Detroit, who bid unsuccessfully in 2013.