Homegrown managing director Andrew Tuck said it became apparent the event needed to be cancelled following information and guidance received by organisers over the past few days.
"We're devastated, we thought at the start of summer we were going to sneak through, but it feels right to call it now for everyone's safety, Also, now we can take a breath and regroup and see how we can make next year's event even better."
The event is usually attended by more than 22,500 festival goers. Photo / Joel McDowell
The festival was on track to be another sell out event, despite the Covid-19 climate.
Tuck said organisers have been blown away by the incredible support they have received.
"We're hoping by calling it early people won't lose out too much on their flights and accommodation."
Refunds are being offered or tickets can roll over for next year.
Organisers say they are engaging in the Events Transition Support Scheme to help facilitate support for artists and suppliers affected by the cancellation.
"We are just working through the logistics of the Government Insurance Scheme now," Tuck said.
"Hopefully, it will lessen the blow for our suppliers and artists. It's a really tough time for everyone in the events industry and our hearts go out to everyone affected."
Drax Project, The Beths, Kora, and Gin Wigmore were among the artists set to perform. Photo / Brady Dyer
Homegrown joins the growing list of events cancelled in Wellington because of the Omicron outbreak.
Wellington's Round the Bays was recently cancelled for the first time in 22 years, with Omicron modelling ruling out the option of postponement.
Even before Christmas, Newtown Festival organisers made the call to can the event this year saying it was logistically impossible to check vaccine certificates in a public street with multiple access points.
Last year Beers at the Basin was postponed until April amid Covid-19 uncertainty.
