The fortnightly freesheet will disappear at the end of June "until such time that the economy improves for recruitment, housing and display advertising".
Kim Watson, media director at Millivres Prowler Group, said: "The decision to suspend fortnightly print and distribution of Pink Paper has been one of the toughest we have had to make in a long, time but in order to ensure that we can continue providing a service to the LGBT community in future we have taken the decision now, rather than when the situation has worsened to a point that we would need to cease Pink Paper all together."
Pink Paper will live on via the website and the weekly Pink Paper Xtra e-newsletter, which launched last spring.
The newspaper has had a chequered history. It launched in 1987 as a weekly paper for the LGBT community but closed in 2004 after a series of relaunches failed to win new readers.
However, it quickly returned after only a month out of print Millivres Prowler brought the title back and launched it as a fortnightly newspaper.
Millivres Prowler also owns Diva and Gay Times magazines.