Soccer Australia had hoped to play in Reading at the end of March.
Said chairman Remo Nogarotto: "Soccer Australia is not in a position to run games to lose money.
"At the end of the day, we couldn't find somebody to underwrite the game."
Australian soccer chiefs are looking to capitalise on the huge ex-pat audience for Australian soccer in England following a sell-out success when the Socceroos played England earlier this year.
Australian soccer chiefs have scrapped plans to stage a friendly against Argentina in the UK amid fears the fixture could lose money.
