Kiwi FM is due to cease transmission on March 31.
The station began broadcasting on Waitangi Day 2005 launching as a station playing 100 per cent New Zealand music. However, in recent years the station has broadcast a mix of 70 per cent NZ artists and 30 per cent international.
Each week, 28,000 listeners tune into the station, Kiwi FM owner MediaWorks said in a statement announcing the closure.
Kiwi FM is also responsible for around 1 per cent of the home grown music played on New Zealand radio stations.
MediaWorks Music Radio group content director Leon Wratt said the station had enjoyed a great nine years and were proud of what had been achieved.
"There are now more options than ever to discover and listen to home grown music, and it is time for us to focus on other priorities, including extending George FM and Mai FM's nationwide reach," he said.
"I want to thank the Kiwi FM staff, past and present, the musicians and record labels that have supported the station, and most importantly, the listeners."
Kiwi FM has been broadcasting on reserved Crown frequencies in Auckland, Wellington and Christchurch.
Following the station's closure, the frequencies will be returned to the Crown.