An AFP correspondent said officers of the National Intelligence Agency in three pick-up vehicles stormed the Teranga FM premises and told station manager Ismaila Ceesay that "this was the last order for the radio to close down."
No arrests were made but the radio station was off the air on Wednesday.
Established in 2009, the radio had been carrying pick-ups from local newspapers in the main Gambian local languages, generating a lot of attention from the mainly illiterate public.
In January 2011, the radio station was closed down by the state authorities only to resume operations while suspending its press review.
Ceesay confirmed the closure of the radio but declined to comment further.
Gambia is ruled by the authoritarian President Yahya Jammeh, a former military officer who seized power in a 1994 coup and brooks no dissent in a country often blasted by rights bodies for abuses.