From 1986 through 1989, Donovan, 53, played Scott Robinson on the soap.
After failing to seek new funding after being dumped by its broadcaster earlier this year, the series, which is set in the cul-de-sac neighbourhood of Ramsay Street, will end production in June.
Donovan, speaking on BBC Breakfast, said: “I think it’s sad… but I believe it’s time for Neighbours to celebrate.
“To be honest, it has kept my family employed for a long time.
“My daughter is currently in it, and my father was in it, and I believe we should be thankful for what it has given Australia in terms of performers, producers, writers, and directors.”
Scott, played by Donovan, was the on-screen lover of Charlene Mitchell, played by Kylie Minogue, an Australian actor and singer.
Scott and Charlene were the power couple on Ramsay Street, and their fans loved them.
When their wedding originally aired in Australia, it drew in over two million viewers, and when it was screened in the United Kingdom in 1988, it drew in about 20 million.
The ceremony went down in history as one of the most watched television events of the decade.
“My father fought incredibly hard for Australian content in television in the 1970s because governments at the time wanted to bring in cheaper exports, and it’s as a result of that that we have productions like Neighbours, Priscilla, Muriel’s Wedding, Moulin Rouge, an identity through the arts,” Donovan continued.
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Minogue, 53, said she will be “forever thankful” for her time on Neighbours when the show’s cancellation was revealed.
“We had no clue how large the programme would become and how passionately people would take it to heart,” she said on Twitter, paying tribute to the soap.
“It’s pure love!” Madge’s voice is still ringing in my ears… CHARLENE!!!!”
Hollywood stars like Margot Robbie and Liam Hemsworth got their start on the show.