In a statement released on Monday night (12 September), the show's production company - Love Productions - confirmed it could not reach an agreement with the Beeb for the show to stay put following lengthly negotiations.
GBBO will move to Channel 4 next year and the first episode will be a celebrity version of the hugely popular baking show.
"After an extraordinary six-year journey with the BBC, Love Productions announces with regret that it has been unable to reach agreement on terms to renew the commission of The Great British Bake Off," the statement read.
The BBC, meanwhile, said: "Working with Love Productions, we have grown and nurtured the programme over seven series and created the huge hit it is today.
"We made a very strong offer to keep the show but we are a considerable distance apart on the money. The BBC's resources are not infinite.
"GBBO is a quintessentially BBC programme. We hope Love Productions change their mind so that Bake Off can stay ad free on BBC One."
Launching a scathing attack, Lord Alan Sugar - whose show The Apprentice airs on the BBC tweeted: "I feel sorry for the @BBCOne they invested years in making Bake off popular and the greedy disloyal format owner has sold it to Ch4."
However, previous GBBO runner-up Richard Burr said: "Flippin Nora! That's a turn up for the books isn't it! So #GBBO is off to @Channel4 eh! Does that mean we're cool now?"
Currently, Mary Berry and Paul Hollywood judge the show, while comediennes Sue Perkins and Mel Giedroyc present it. It is unclear whether all four stars will continue to judge and host GBBO following the move.