Seventeen-year-old Gotham magazine is going to fold and become a section inside Manhattan magazine at Modern Luxury,

The move surprised many observers as Gotham was believed to be the more profitable of the two — and with a higher profile in the media world than 10-year-old Manhattan.

Staffers were told Wednesday.

“In terms of total dollars, I think Manhattan did a better job with national ads and Gotham did a better job locally,” CEO Michael Dickey told Media Ink.

The Dickey family’s Modern Luxury inherited Gotham and Hamptons Magazine when it purchased GreenGale Publishing a year ago at a fire sale price believed to be under $15 million.

As a result of the move, Sarah Bray, who was running Gotham and Beach, will now be the editor-in-chief only of Beach while continuing to edit a Gotham section in Manhattan.

The company said the former Town & Country staffer will also be the interiors editor for the whole chain. Phebe Wahl stays as editor of Manhattan.

Dickey insisted no other consolidation plans are afoot.