The programme, which launched last month with a massive publicity campaign, was demoted after ITV feared it might have to pay advertisers £100m to compensate for lost revenue.
The DIY reality show -- a cross between 'Big Brother' and 'Property Ladder' -- features four couples, who have been given £25,000 to renovate a block of flats.
It was first screened in Australia, where it was a massive hit for the Nine Network and regularly commanded more than 4m viewers.
"The Block has not performed as well as we would like," ITV said.
The coveted 9pm slot usually generates ratings of well over 6m viewers on ITV1, with some popular TV dramas garnering more than 10m.
ITV1 suffered its worst monthly ratings for over a decade last month when it was regularly beaten by Channel 4's 'Big Brother' and 'Wife Swap'.
The network is also moving quiz show 'The Vault' from its 8pm Tuesday slot after its ratings slumped.
ITV1 hopes two big shows will boost its ratings this autumn. Simon Cowell, the acerbic Pop Idol judge, will present his own musical talent search called 'The X Factor' while ratings-winner 'I'm a Celebrity -- Get me Out of Here!' will make its return.
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