The 2022 edition of the festival was scheduled to be held on March 31-April 11, but the organizers announced on Wednesday that it has been postponed to an indefinite date.
They said the decision came as the government has decided to extend the social distancing measures until April 20.
Hong Kong has recorded nearly 5,000 new coronavirus cases daily since February 15.
Hong Kong chief executive Carrie Lam announced on Tuesday that the entire population of nearly 7.5 million people would undergo three rounds of compulsory coronavirus testing in March in a bid to curb the spread of the virus.
The festival was forced to cancel its 2020 edition over the COVID-19 outbreak, and last year it was held as a hybrid event.
SQ/MG