Biffy Clyro, Calvin Harris, Camila Cabello, Dua Lipa and Harry Styles had been due to appear at Radio 1's Big Weekend event in Dundee.
The BBC, which was due to bring the three-day event to the city for a second time in May, said the decision had been taken "in line with the advice from the Scottish Government."
Ms Sturgeon has called on organisers of events across Scotland for more than 500 people, which have a potential impact on the emergency services, to “take action now.” The government has not indicated how long the restrictions will remain in place.
More than 70,000 fans had been expected to attend the festival in Camperdown Park, which city council chiefs hoped would have generated several million pounds for the economy.
An official statement from the BBC said: “After careful consideration we have come to the decision that Radio 1’s Big Weekend 2020 in Dundee will not go ahead.
"This decision has been made in conjunction with our event partners, in line with the advice from the Scottish government.
"While we know fans looking forward to purchasing tickets will be disappointed, it is important that we prioritise the health and safety of all those involved.”
Snow Patrol, Muse, Keane, Pink, Sugababes and Razorlight all appeared at Radio 1's Big Weekend when it was previously staged in Dundee in 2006.