The decision, approved by the Policy & Resources Committee, follows the introduction of a new 12-sided UK £1 coin, and the withdrawal of its current version by October this year.
Islanders are being encouraged to exchange £1 coins (both Guernsey and UK versions) at high street banks, which have been consulted as part of this decision.
There are currently 581,000 Bailiwick of Guernsey £1 coins in circulation and the local high street banks have not requested any new stocks for more than 10 years.
The decision to withdraw the Guernsey £1 coin follows the previous adoption locally of coin design changes made by the UK, with the reduction in size of the 50p, 10p and 5p pieces, as well as the introduction of the £2 coin, being adopted by Guernsey.
Guernsey £1 notes will continue to be issued alongside the circulation of new UK £1 coins locally.
Lee De Carteret, Central Services Director, said:
'As part of the 2014 Budget, the UK government announced its intention to introduce a new £1 coin. This is the first change to the £1 coin since 1983, and has become necessary due to the increasing vulnerability of the current design to fraud.
'The new coin, which is 12-sided and includes anti-counterfeiting technology, will start to enter circulation in March. While Guernsey does not have any issues with regards counterfeiting of its £1 coins, mirroring the UK's £1 coin withdrawal was necessary for practical purposes.
'Due to the continued popularity of the Guernsey £1 note and the lack of demand for £1 coins locally, there are no current plans to introduce new 12-sided Guernsey £1 coins although this will be kept under review.'
