The ride, called WindSeeker, stranded people 300 feet in the air twice in 2011.
Knott's Berry Farm officials confirm they plan to take down WindSeeker in January 2014. The ride will then be shipped to Worlds of Fun in Kansas City. The two parks are owned by the same company.
WindSeeker is a 32 two-person-gondola attraction that ascends to a height of 301 feet.
The ride, which opened at Knott's in August 2011, is already shut down.