Arena's final April issue goes on sale on Thursday, 12 March.
Bauer has now entered consultations with employees. The publisher said it will seek opportunities to redeploy staff in other areas of group.
The title's suspension does not affect the biannual style magazine offshoot Homme Plus, edited by Jo-Ann Furniss, which will continue to be published.
Arena, considered a pioneer of men's magazine publishing when it launched in 1986, had a circulation of more than 90,000 in the 90s. ABC figures for July to December 2008 showed Arena's circulation was 29,374, up 16.4 per cent year on year, but down 4.9 per cent on the previous six months.
Bauer said it would continue to work with its partners on Arena's international editions, which are published in Ukraine, Turkey, Denmark, Korea, Thailand and Singapore.