Market Place Europe, which previously ran the operation at George Square, confirmed it has pulled the plug on the market after experiencing difficulties accessing the site.
It is understood Glasgow Life was unable to guarantee when organisers would be able to begin setting up for the event because of COP26, according to the Glasgow Times.
Markets at the square had been planned to run from November 25 to New Year's Eve.
This is the second year the events have been scrapped after last year's festivities had to be halted due to strict coronavirus measures.
A spokesperson for the company said: "It's 100 per cent been cancelled.
"The reason is following COP26 the council couldn't guarantee the accessibility to George Square because they don't know how many people will be staying behind.
"There could be activities going on that we don't know about and we need to have 100 per cent access to the site."
It's understood the decision to scrap the market was mutual between city officials and organisers.
The St Enoch market is still set to go ahead from November 21 to December 23.
A spokesperson for Glasgow Loves Christmas said: "We explored every option with the Glasgow Christmas Market operator to make George Square markets possible this Christmas.
"Unfortunately we haven't been able to create a mutually agreeable plan for this venue.
"We are looking forward to the return of the markets in St Enoch Square which will run from around 21/22 November until 23 December."