In CTRL-E menu "Edgeloop Delete" with a valid "inner" edgeloop selected, this function calls other tools to delete that edgeloop by doing the following

Edgeslide to one side 100%
CTRL +  to select "more"
Remove Doubles

Leaves you with new faceloop selected.

source/blender/include/BIF_editmesh.h

@@ -173,6 +173,7 @@ extern void fill_mesh(void);
 extern void bevel_menu();
 void edge_rotate_selected(int dir);
 int EdgeSlide(short immediate, float imperc);
+void EdgeLoopDelete(void);
  
 #endif
 

source/blender/src/editmesh_mods.c

@@ -1783,7 +1783,7 @@ void editmesh_mark_seam(int clear)
 void Edge_Menu() {
 	short ret;
 
-	ret= pupmenu("Edge Specials%t|Mark Seam %x1|Clear Seam %x2|Rotate Edge CW%x3|Rotate Edge CCW%x4|Loopcut%x6|Edge Slide%x5");
+	ret= pupmenu("Edge Specials%t|Mark Seam %x1|Clear Seam %x2|Rotate Edge CW%x3|Rotate Edge CCW%x4|Loopcut%x6|Edge Slide%x5|EdgeLoop Delete%x7");
 
 	switch(ret)
 	{
@@ -1807,6 +1807,10 @@ void Edge_Menu() {
         CutEdgeloop(1);
 		BIF_undo_push("Loopcut New");
 		break;
+	case 7:
+        EdgeLoopDelete();
+		BIF_undo_push("Edgeloop Remove");
+		break;
 	}
 }
 

source/blender/src/editmesh_tools.c

@@ -4264,6 +4264,14 @@ static float Dist2s(short* d1,short* d2){
     return sqrt(pow(d1[0]-d2[0],2)+pow(d1[1]-d2[1],2));   
 }
 
+void EdgeLoopDelete(){
+    EdgeSlide(1, 1);
+    select_more();
+    removedoublesflag(1,0.001);
+	EM_select_flush();
+    DAG_object_flush_update(G.scene, G.obedit, OB_RECALC_DATA);
+}
+
 int EdgeSlide(short immediate, float imperc)
 {
     EditMesh *em = G.editMesh;