Merton Council says extreme financial pressure means a professional coaching company will now run the courts on its behalf.
The authority has invested nearly £1 million in the borough’s public tennis courts which are some of the best in the country.
Nearly half of that money came from a Lawn Tennis Association grant.
A stipulation of the LTA grant was an annual £65,000 fund to pay for future court upgrades and refurbishment.
Tennis in Merton, previously Emma Wells Tennis, will now run the courts and provide coaching.
This means commercial activities must be conducted under the Tennis in Merton umbrella, with independent coaching no longer permitted.