The annual festival's 50^th anniversary celebration was due to take place in March, after the 2020 event was postponed due to the COVID-19 pandemic.

But festival president David Richards OAM on Tuesday confirmed the event would go into recess until a COVID-normal stage was declared.

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"This decision was made after several meetings and discussions," Mr Richards said.

"It is heartbreaking for our volunteer members who have already put many hours into preparation to come to this conclusion.

"I acknowledge the support and time given to our festival by the City of Greater Bendigo."

The cancellation came after a number of other 2021 Bendigo events were called off due to challenges with COVID-19 requirements.

Mr Richards said it was too difficult to ensure the Eaglehawk festival would be safe for the community.

"Our committee has considered all government requirements to keep our community safe from COVID infection," he said.

"The uncertainty that an outbreak would cause to our event holders, event sponsors, and the members of the general public is too big of a risk to take.

"It came to the decision realising in reality that to continue investing time and money in what seems to be an unwinnable situation could become very frustrating. We would dread this happening."