U.K. Sunday newspaper the Observer is to close three of its monthly magazines next year - including the Observer Music Monthly.

The new four-section paper will appear next year following a re-design, said Guardian News & Media.

The announcement follows cost savings of £10 million ($16.7 million) made this year in editorial budgets at Guardian News & Media in response to the effects of the advertising downturn and long-term decline in print circulation. The company confirmed in September that the Observer would continue to be published after speculation it could close.

In September, the Observer sold an average of 385,617 copies each weekend according to the Audit Bureau of Circulations - up 6.6% on the previous month but down 14.9% year-on-year.