The contest between European champions Spain and Copa America winners Argentina was scheduled for March 27th at Doha's Lusail Stadium.
UEFA said they held discussions with the organising authorities in Qatar and concluded that the match could not take place due to the "current political situation" in the region.
"It is a source of great disappointment to UEFA and the organisers that circumstances and timing have denied the teams of the chance to compete for this prestigious prize in Qatar," UEFA said in a statement.
Argentinian FA rejects alternatives
UEFA said they explored other feasible alternatives, but they proved to be 'unacceptable' to the Argentinian Football Association (AFA).
UEFA first offered to stage the match at the Santiago Bernabeu with a 50:50 split of supporters in the stadium.
A second option was to stage the Finalissima over two legs - at the Bernabeu on March 27th and the second leg in Buenos Aires during an international window before the next Euros and Copa America.
However, the AFA rejected both options. UEFA said Argentina made a counteroffer to play the game after the World Cup, but Spain had no available dates.