The Country Harbour ferry will remain out of service until a new vessel arrives in May.
The old ferry was intended to run until then, but the Department of Transportation and Infrastructure Renewal says it faces mechanical issues which cannot be repaired.
The old ferry has been out of service since November, when a detour from Port Bickerton, to Melrose, to Cross Roads Country Harbour, and to Issacs Harbour, was put in place.
The province announced it was replacing the 12-car ferry with a 15-car ferry in 2019.