B1 and B2 won't hang their pyjamas anytime soon. ABC is denying that the long-running children's program "Bananas in Pyjamas" is being axed at the end of the month.

The network's head of children's content, Tim Brooke-Hunt, apparently said that the animated show, which roughly costs $100,000 per half-hour of screen time, does not generate enough revenue to continue.

"It is a matter of money. Although we have been nicely treated by the government in the context of funding of our school-age channel, ABC3, the reality is that ABC4Kids (on ABC2), is funded from the previously existing, general allocation for the ABC," he has been quoted by Fairfax Media as saying.

The show will continue to be repeated on ABC2, but the network would not commission another seasons for at least two years. Any future decision to renew the program would base on how the show's merchandise figures sales overseas perform.

Its international merchandise sales were the key to the longevity of the show, according to Brooke-Hunt, but the sales of the current series were disappointing compared to the profits generated of the original series.

However, ABC has refuted the report of cancellation, saying that it was inaccurate and "seriously misquotes" Brooke0Hunt.

"The ABC has no intention of ceasing to broadcast one of Australia and the world's most popular children's TV programs," a spokeswoman told Guardian Australia.

The show still has unaired episodes in the can, which would help the show run until August before they would be repeated.

On whether a new series will be made, the spokeswoman said that that has yet to be decided upon as it would first have to go through the "usual commissioning process," which would be in November of this year.

And although the production on the animated show has indeed ceased, the spokeswoman said it's normal.

"The process we are taking with Bananas is no different to the process we have followed for the 21 years of the program."

"Bananas in Pyjamas" first aired in July 1992, and is currently syndicated to 130 countries worldwide.