Police Scotland and the Scottish Ambulance Service also raised concerns following the death of 17-year-old clubber Regane MacColl in Glasgow last weekend.
The council suspended the licence for the DJ Hardwell Dance Event which was due to take place at the Royal Highland Showground at Ingliston last night.
More than 100 young concert-goers were treated by medics in Belfast on Thursday night as a major incident was declared by the Northern Ireland Ambulance Service and in two of the city's hospitals.
Eighteen people were hospitalised in the wake of the incident at the Odyssey Arena, where Dutch DJ Hardwell was playing to a crowd of 10,000.
Councillor Gavin Barrie, convener of Edinburgh City Council's regulatory committee, said: "We have taken the difficult decision to suspend the licence on the grounds of a serious threat to public order and safety following advice from Police Scotland and health officials after what happened in Belfast and Glasgow.
"We appreciate the disappointment this will cause to those who were planning to attend the event but protecting public safety must be our priority. Ticket-holders should be able to get a full refund."
Hardwell was named the world's number one DJ in DJ Mag's top 100 poll for 2013. His hits include Spaceman, Three Triangles (Losing My Religion) and Apollo.
Police Scotland Superintendent Matt Richards said: "The force has expressed its concerns to the City of Edinburgh Council ahead of a proposed concert at the Royal Highland Showground on Saturday, February 8.
"As a result of this partnership approach to harm reduction, a decision has been taken to cancel the event."