The sixth edition of the race was originally due to take place between April 30 and May 3 of this year, but due to Covid-19 the event became untenable.
The race was due to set off from Barnsley Town Hall on May 2 before the race was postponed.
Welcome to Yorkshire and the Amaury Sport Organisation (ASO) made the joint decision but are committed to see the race return in 2022.
Welcome to Yorkshire’s chief executive James Mason said: “During these uncertain times Welcome to Yorkshire need to focus on the immediate needs of the industry without committing both financial and human resources towards any activity or event that we cannot be certain of.
“Cycling has become synonymous with Yorkshire and the Tour de Yorkshire has become a firm fixture on the world cycling calendar due to the reception the riders and teams receive in our county.
“Whilst it is very disappointing that we will be bereft of this wonderful race for another year the decision we have made is the right one and perhaps the only one we could make.
“The uncertainty in front of us meant it was impossible to plan or commit the resource that the race needs.”
Yann Le Moenner, the director general of ASO, added: “We fully understand Welcome to Yorkshire’s position and are totally associated with this joint decision.
“We have worked a lot together since the Grand Départ of the Tour de France 2014 to put the Tour de Yorkshire at the top of the international cycling calendar.
“This work is obviously not wasted and we will collectively do our best to relaunch the event in 2022 and give the chance to the world’s best riders to be on the Yorkshire roads in front of one of the most enthusiastic audiences the cycling world has ever seen.”