The Junta de Andalucia confirmed the decision – though to have been brought about by a mixture of economic and political factors – by letter and press release on Monday September 10.
Despite discussions with the Royal Spanish Golf Federation and a pre-existing legal agreement with the Junta, the tournament will not take place.
George O’Grady, Chief Executive of the European Tour, said: “This is extremely disappointing news to receive, especially at such a late date. We have been long-term partners with the Junta for over 25 years.
“In that time we have seen, together with many other events, the Volvo Masters from 1988-2008, two American Express World Golf Championships and the Jewel in the Crown, the 1997 Ryder Cup.
“We have worked together to promote the region, and the Junta de Andalucia and the European Tour have enjoyed an exceptionally strong and committed long-term partnership.
“We feel the disappointment, not only for our members and all committed to broadcasting and reporting this tournament and the region on a global scale, but also for the many visitors, especially from Northern Europe, who coincide their vacations with the tournament.
“We will work with the Junta to rectify this situation, both now and in the future.”