On Top 7, the seventh event by Glasgow-based On Top Promotions, had sold 850 tickets to fans and was set to feature mixed martial arts fighters from across Europe.
But organisers have had to pull the plug after host venue, the Hilton hotel, said it was risking prosecution if it allowed the show to go ahead.
The Hilton said police had visited the hotel in the days leading up to On Top 7.
A Hilton Worldwide spokeswoman said: "Following a visit to Hilton Glasgow from the Licensing Division, Police Scotland and subsequent discussions with the licensing authority, it has been brought to light that holding the event organized by On Top Promotions may be in contravention of the property's licence and could lead to prosecution.
"It is with regret that we will be unable to stage this event at the hotel and understand this news will come as a disappointment to all those involved."
Neither Police Scotland or Glasgow City Council would elaborate on the particular issue with the licence.
A Police Scotland spokeswoman said: "The Hilton has cancelled this event following discussions with police regarding the venue's lack of an appropriate operating licence."
A spokesman for Glasgow City Council's Licensing Board would only say: "This is a matter for the police."
On Top's last event, planned for Bellahouston Leisure Centre, was also called off on police advice.