The provider of the Meals on Wheels Service will terminate its service this year.
West Sussex County Council is searching for a new provider to take over when the Royal Voluntary Service (RVS) ends its contract in October.
A West Sussex spokesman said: “The County Council has not removed any funding of the Meals on Wheels service in West Sussex and has no plans to do so.
“Royal Voluntary Service has served notice to terminate the contract in October and we are now actively working to secure a new provider for the service.
“When the new contract was put up for tender in 2013, it was to be a completely cost-neutral service for the County Council and self-funded by the contractor. This is something the Royal Voluntary Service along with other bidders built in to their proposals.
“It is disappointing that the Royal Voluntary Service have reached the decision that they cannot continue with the contract. However they have assured us that they can continue to deliver the service to customers in the current format until the new provider takes over in October.”
Meals on Wheels provides hot meals to the homes of elderly and vulnerable residents.