The decision was taken after the council received complaints and petitions from residents about the event.
Residents said that the festival caused problems with access and parking, used loud fireworks, while also raising issues about the time and date of the event.
The parish council members said that they were aware that this was a festival that raised funds for local charities and that they would be willing to work with the organisers on other events throughout the year.
A statement from Flamborough Parish Council said: “Following representations and petitions from residents of Flamborough objecting to the fire festival, the parish council has decided not to grant permission for use of the village green for the event.
“In previous years the festival has attracted thousands of visitors to the village.
“Residents have complained about the influx of people which causes problems with access and parking, the loud fireworks and about the time and date of the event.
“They are also concerned about a large event this year due to the uncertainty caused by the Covid-19 pandemic.”