Durban will not host the 2022 commonwealth games due to financial constraints, South African Sports Confederation and Olympic Committee president Gideon Sam told Reuters on Monday.
In a telephone interview, the sports association head claimed that lack of funding from the South African government crippled preparations to the prestigious games.
South Africa was forced to reconsider whether it could host the event due to doubts over the economic legacy of the Games and sluggish growth.
The government estimated that the Games could deliver up to $1.54 billion in output to the economy.
Durban was awarded the Games in 2015 as the only city to make a confirmed bid and it was to have been the first African host of the event.
The Commonwealth Games, first staged in 1930, are a multi-sport event held every four years featuring athletes from over 50 countries, mostly former British colonies.
The 2018 Commonwealth Games will be held on the Gold Coast in Australia.