Organisers IMG said the US$1m (B1.1m) women's team event, due to be played at Royal Adelaide from November 30-December 2, had been scrapped for financial reasons.
An IMG spokesman said the Asian company underwriting the event had pulled out because of a downturn in the economy. The spokesman said no decision had been made on the future of the tournament.
The inaugural women's World Cup was held in Malaysia in 2000. It was won by the Australian pair of Karrie Webb and Rachel Hetherington.
The LPGA World Cup of Golf, scheduled to be played in Australia later this year, has been cancelled.
