The global megastar had been been due to appear at the Scarborough concert venue on July 3, 2022.
A statement on Lionel Richie's Facebook page read: "As Covid and its variants continue to impact the world, I have decided to hold off on my European tour this summer. The most important thing to me is the health of my fans, band and crew. I hope you all understand and I hope to see you very soon when we can all gather safely.
"Please visit individual festival/event websites for further information and details on how to collect refunds."
The show had been rescheduled from Saturday June 12, 2021.
It was to be the second time Lionel had visited the Scarborough Open Air Theatre following his sold-out show there in 2018.
A spokesman for Scarborough Open Air Theatre said: “We are sorry Lionel Richie is no longer able to come to Scarborough Open Air Theatre this summer.
"Ticket holders will now be contacted by their point of purchase.
“Rest assured we will be inviting Lionel back to headline the Scarborough OAT stage in the future.”