Xfm's primary focus is the new-music radio station, which means that there is a limit to the amount of money it is willing to invest in brand extensions such as X-Ray magazine.
Graham Bryce, Xfm's managing director, said: "X-Ray has been an important brand extension for Xfm, allowing our listeners to experience the brand in more ways than just listening to the station. With very modest budgets the magazine has firmly established itself as a key player in the market with a consistent and loyal readership base."
He added: "Swinstead has been a great partner but we are now in discussions with a number of other parties about investing in the magazine."
The next issue of X-Ray will be published on Tuesday January 27 and will be the last issue published by Swinstead. Xfm declined to comment on what happens after that date or what firms it is in discussions with.
Adam Dewhurst, co-founder and marketing director at Swinstead, said: "We published the magazine on a contract basis and it was launched as a bit of a fanzine. Xfm is now seeking an investment partner and we don't want to invest and neither can it. It's a shame really, it has done really well on the newsstands."
X-Ray, which has yet to report an ABC, competes with the likes of Emap's Q and IPC Media's NME. Furure Publishing's competitor Bang closed in December following poor sales.
X-Ray launched in October 2002 and claims to sell more than 20,000 copies a month on UK newsstands. Over the past 14 months some of the biggest acts have graced its covers, such as Radiohead, The White Stripes and The Foo Fighters.
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