The Show has not been AXED!
According to John Sullivan, we will have a pilot to the prequel of ONLY FOOLS & HORSES (called "Sex, Drugs and Rock & Chips") which is filming at the moment at Christmas and if successful a series will follow in 2010.
If the prequel flops, then Green Green Grass will return next Autumn.
He also explained that the BBC wouldn't let him have two shows on at the same time, and they thought that the show needed to take time out...