The festival organizers say that after 40 years, they have outgrown the city of Park City, which lacks both sufficient cinemas and housing to accommodate the largest film festival in the USA.
What is now called the Sundance Festival was founded, among others, by actor and director Robert Redford and was first held in 1978 in Salt Lake City under the name Utah/US Film Festival. Since 1981, the festival has been held in Park City and from 1984 with the name Sundance.
The 88-year-old Redford, who attended the University of Colorado in Boulder in his youth, has given the move his blessing.
"Words are not enough to express the incredible gratitude I feel towards Park City, the state of Utah, and all those in Utah who have helped build up the organization," says Redford in a statement.