A Birmingham art gallery is being forced to close in April after its funding was slashed.

Ikon Eastside, which relied on funding from Birmingham City Council and Arts Council West Midlands, has hosted work by world famous artists including Andy Warhol and Damian Ortega.

The exhibition space in Fazeley Street, Digbeth, which opened in 2005, was also one of the venues for the Flatpack film festival as well as the International Dance Festival and Supersonic.

Jonathan Watkins, Ikon director, said: “We are extremely saddened to be losing Ikon Eastside but our commitment to bringing internationally recognised art to the city is unwavering.

“Looking to the future, our goal remains to create a permanent museum of contemporary art for Birmingham.”

It was reported in December that the gallery faced losing its £200,000-a-year funding in the squeeze on public spending.

Ikon will still be part of the Eastside Contemporary Art Consortium and plans to continue putting on site-specific events.

The gallery will hold its final event, a three-day Rites of Spring music festival, from April 7 to 9, featuring Turner Prize winner Martin Creed, Modified Toy Orchestra and Epic45.

The venue is open from Tuesday to Sunday and Bank Holiday Mondays from 11am to 6pm and entry is free.

Upcoming exhibitions include Robert Orchardson’s Endless Facade, and White As Snow by Rabbya Naseer and Hurmat Ul Ain.

Ikon’s flagship Brindleyplace gallery will stay open as normal, and a feasibility study into a new art museum called Ikon Two will not be affected.