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Bayern Munich won the Club World Cup 2020, which was delayed until February 2021 due to coronavirus.
Japan pulled out of hosting December's Club World Cup due to Covid-19 restrictions.
Fifa stated that the Japanese Football Association (JFA), told them on Thursday, "it is not in a position to host the competition."
This tournament honors the champions from each continent, with Chelsea this year being the Champions League winner.
Fifa stated that details regarding an alternative host would be made public in the near future.
Japan hosted the Paralympic and Olympic Games this summer. However, Japan is currently in a state emergency and facing its worst Covid wave.
The tournament would be held in Japan for the ninth time, and it would have been held during the 100th anniversary celebrations of the JFA.
Bayern Munich won 2020 Club World Cup. It was held in Qatar in February 2021, after it had been postponed due to the pandemic.
