Dundee Blues Bonanza has followed in the footsteps of RockNess, which postponed this year's event partially because it would have clashed with the Brazil tournament and the Commonwealth Games.
A total of 200 bands had been booked for what would have been the 20th annual bonanza.
In previous years around 12,000 fans have attended what some have called Europe's biggest free blues festival.
Organisers said the event had made Dundee the blues capital of Scotland.
A statement posted on the Dundee Blues Bonanza website read: "Very regretfully, due to several issues including health, funding and the World Cup, the Dundee Blues Bonanza committee has decided that the festival will not take place this year.
"We intend to take a year out and come back refreshed and raring to go in 2015, hopefully with more corporate support.
"Thanks to all the musicians and fans for your invaluable support and friendship over the years."
The event had been due to be staged at more than 30 venues from June 27 until June 29.
There are no World Cup games scheduled for the first day, but there are two big games on the second and third days.
This year's star attractions had not yet been unveiled but the likes of Li'l Jimmy Reed, Kat Pearson and Muddy Waters's son Mud Morganfield had all appeared as headline acts in previous years.
Organiser Bob Telford was reported locally as saying: "It's not going to happen this year. We're taking a year out.
"We're tired and the volunteers have other things in their life to do, so we're not going ahead this year."
He said the organisers fully intended to return with the festival next year, but they had done 19 years and wanted a short break from it this year.
He added: "We're looking after our health and we want to have a rest.
"All the bands have been notified.
"We've spoken to about 200 of them."
He said they had received a great deal of support from the different acts and bands, adding: "They know what it takes to put this on and they know the reasons why we've cancelled it this year."
Fans were feeling decidedly blue about the news in their comments on the festival website and social media.
One said: "Gutted! Haste ye back."
Another said: "Really sad news. We come up from Bathgate for the DBB and have a great weekend in Dundee.
"Hope you can secure more support of all kinds for next year. Best wishes."
The organisers of RockNess, which was to have been held in Dores, near Loch Ness, in June blamed the competing World Cup in June and Commonwealth Games in Glasgow.
They have pledged the event will return next year.
It usually drew more than 30,000 revellers to the area.
However, last year there were claims that numbers had dropped significantly.