Maddah said he wasn't sure why Blur were blaming the festival "when all everyone here has done is kiss their ass".
The only thing organisers said no to was a request to swap positions on the bill with Arcade Fire, Fasterlouder.com.au reported.
Campbell Smith, the organiser for the New Zealand leg of the Big Day Out, yesterday said he was blindsided by the announcement.
In a message posted to Twitter, he said he had "no idea" the band were thinking of pulling out of the event.
He would make a statement as soon as he found what "what happened and what will happen".
A replacement act for Blur is expected to be announced by organisers "very soon", and a statement is due for release later today including details about the potential for refunds for disappointed Blur fans.
In their statement posted to their Facebook page, Blur said: "Devastated to report that Blur won't be performing at BDO in 2014. It's a shock that it has come to this.
"Only 8 weeks to go, the band feels that with the constantly shifting goalposts and challenging conditions of the organisers, they can't let it drag on any longer and want to make this announcement, to be clear to Blur fans that they won't be there.
"We've done our very best to work with the organisers and considered every option to make it happen, but they've let us down and let everyone else down too."
The Big Day Out was canned in New Zealand after a sparsely attended show in 2012.
It was brought back this year with a new venue and a strong lineup for 2014, topped by Pearl Jam, Arcade Fire and Snoop Lion.
- nzherald.co.nz