The tug of war between East and West Ayton villagers over the River Derwent has been cancelled by organisers.
The charity event, which was set to be followed by a talent show and raffle at Ye Olde Forge Valley pub, was raising money for St Catherine’s, Mind and MacMillan.
Organisers said "we feel it is the only responsible thing to do" and cited their concern over "confusion" from Boris Johnson and rising Covid cases.
They added that it was "tough" to cancel the event, and the decision was taken with "a heavy heart", but organisers hope to rearrange when possible to do so "without being irresponsible and risking the rise in local cases".
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The New Year's Eve Flamborough Fire Festival has also announced that it will not be going ahead this year.
Organisers made the decision last week, before Boris Johnson announced that there will be no new Covid restrictions before New Year, over concerns about rising Covid cases.
Jane Emmerson, the festival’s organiser, said: "We are so very sorry to give such a disappointing announcement but we would like to thank everyone for their fantastic support and interest in the Fire Festival.
"The team are pleased to say the event will return in 2022 with a new, and even more exciting festival."
Scarborough’s New Year’s Day dip in the South Bay is set to go ahead as scheduled with the dip starting at 12.45pm.
Prizes will be available for the best-dressed participants in different categories.