Organisers of the popular event in Sedgley, which takes place in and around Bull Ring in the run-up to Christmas, are looking at holding something online instead.
Each year people are treated to live entertainment and stalls which provides a festive atmosphere.
It is hoped the switch-on event will return next year in a "bigger and better" capacity, said Sedgley ward councillor Shaun Keasey.
He told the Express & Star: "People's health has to come first. We haven't - by the looks of it - got the virus under control, so events like this can't go ahead as much as it's sad."