Bristol's St Paul's Carnival will not take place in 2006 in order to undergo a major revamp ahead of celebrations for its 40th anniversary in 2007.
The event will be part of Bristol's "Celebrating Diversity" year, marking the 200th anniversary of the abolition of the transatlantic slave trade.
Over the next 20 months organisers will consult with major carnivals in the UK in an attempt to improve the event.
It is supported by Bristol City Council and Arts Council England South West.
David Dravie-John, chair of St Paul's Carnival Committee, said: "Over the years, St Paul's Carnival has grown into one of the key celebratory events in Bristol's calendar.
"We are delighted to have this opportunity to develop it as something that can continue to delight people for generations to come."