Big Day Out chief executive Adam Zammit tweeted that he would announce a replacement for Blur "very soon".
Campbell Smith, the organiser for the New Zealand leg of the Big Day Out, said he was blindsided by the announcement.
In a message posted to Twitter this afternoon, 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".
The Blur announcement a total surprise to me. I had no idea. As soon as I find out what happened and what will happen, I will advise.
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, Blur, Arcade Fire and Snoop Lion.
Blur's decision to pull out of the festival has left many fans disappointed and angry, with some saying they are no longer interested in going and calling for refunds.
So blur have pulled out of #BDO - SO glad I didn't get tickets now!
I hope refunds will be offered, this is a shambles @bigdayout #bdo
Big Day Out organisers have sold 20,000 early bird tickets to the festival at a cost of $165 each.
A further 30,000 tickets are on sale for $185 each.
- nzherald.co.nz