Wolverhampton Council came to the decision alongside Toura Toura Festival and Creation Records label founder Alan McGee.
It had been due to take place this May – but it will be held on May 28 and May 29 next year in West Park, chiefs have confirmed.
Councillor Steve Evans, cabinet member for city environment, said: "In view of the recent announcements by the Prime Minister and taking into account his proposed roadmap of easing lockdown, we have taken the difficult decision to postpone this year’s Creation Day Festival to the same weekend next year.
"We know this will be disappointing news in what has been a very challenging 12 months. But due to the uncertainty caused by the pandemic, we feel it is the responsible decision to take.
"However, I’m pleased to say that we have a new date confirmed and we are committed to making Creation Day Festival an amazing event to look forward to in 2022.
"We all need a light at the end of the tunnel and we all deserve a chance to enjoy ourselves. For fans of great music, Creation Day Festival is that chance.
"It’s also one of the ways we can boost our city and show our visitors the fantastic events we have to offer. Creation Day will come just before we host the 2022 Commonwealth Games cycling trial and on the back of the refurbishment of the Civic and Wulfrun Halls."
Happy Mondays, Editors, Ash, Echo & the Bunnymen, Black Grape and Sleeper were some of the acts set to take to the stage in West Park this year.
Organisers say they are planning to include the majority of artists from the original line-up alongside a few other names as well, with the full line-up set to be announced in the coming months.
Mr McGee formed Creation Records in 1983 and it went on to become one of the key labels in 80s and 90s indie music. Over the years, he has worked with such major acts as Primal Scream, The Jesus and Mary Chain and Oasis.
Tickets for this year's festival will automatically transfer to the new date or can be fully refunded. Ticket holders will be contacted directly – with further details, or to request a ticket refund, available by visiting Ticketmaster via "Submit a Request".
Visit www.creationdayfestival.com or follow Creation Day Festival on social media for more information.