Steve Auckland, managing director of Associated Newspapers Free Division, said: "Following a lengthy consultation with London Lite staff, we've together decided to produce our last issue on Friday 13 November."
In September, News International closed competing title thelondonpaper. Last month, the London Evening Standard went free and upped its daily distribution to 600,000 copies.
The London Lite launched in August 2006 as a spoiler to News International's thelondonpaper and to protect sales of Associated's then sister paid-for newspaper, the Evening Standard.
Associated retains a 24.9% stake in the Standard, which was taken over by Russian oligarch Alexander Lebedev in January.
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