Taking to social media, organisers stated:
"It is with great regret that the decision has been made to cancel Shandon Street Festival 2020, which was to take place exactly one month from today, June 20.
"We had a fabulous festival in store for you and we are extremely disappointed to have to cancel it.
"As much as we had hoped that the recent restrictions imposed on us all would be reduced by June, the restrictions on large gatherings will not change, therefore, in the interest and safety of public health, we have no choice but to cancel."
The 2020 event was due to be the 14th annual Shandon Street Festival.
Organisers say they are hopeful that a family event will be able to take place before the year is out.
"We will not let this defeat us and if possible we hope to try and organise a family event before the end of the year," they said.