Organisers of Halesowen Carnival took the "hard decision" to cancel the July 4 event on health and safety grounds.
Stuart Henley, chairman of the organising committee, has promised the carnival will return next year "bigger and better than ever before".
People who were set to perform there at being contacted.
The event is part of the wider Black Country Festival which brings together events in July marking Black Country Day.
At present other Black Country Festival events are taking place, organisers told the Express & Star.
In a statement on the carnival's Facebook page, Mr Henley said: "It has been a hard decision but the committee have decided to cancel this year's event.
"Although we had most things in place for the event, the uncertainty of when and if we would be able to hold it in July - due to the current pandemic - made it hard to get the final items together.
"Social distancing for an event like this would not be possible and we would hate to think that visitors could end up going away with the virus. Your health and safety must come first."
Next year's event has been scheduled for July 3.
But while the carnival has been cancelled, the event's popular dog show is still taking place - albeit online.
People are asked to send in photos and videos of their dogs, alongside why they should win specific categories.
A total of 10 categories have been listed, which are: best puppy [12 months and under], best rescue dog, best trick, best paw shake, overall show champion, loveliest ladyfabulous fella, best junior handler and waggiest tail.
Entries can be sent to email@example.com.
The event is sponsored by The Big Pet Store , Dogy Daycare and Blue Cross Animal Rehoming Centre.