The French Christmas in July market has been postponed until July 29 to August 1 following the COVID-19 outbreak in Greater Sydney.
The wintry event was originally planned for July 1 to 4 at the National Rose Garden in Parkes.
Festival director Vincent Hernandez said most of their staff members were outside of the ACT and unable to re-enter.
"The upcoming Christmas in July event will be postponed to the end of July after most of our team is stuck outside of ACT and also because we want to make sure it's safe for everyone to attend," he said.
"[It's] heartbreaking news for the team who has been working for months to bring you a magical experience next weekend."
The festival is a free event, which hosts a village of chalets shipped from Europe, stalls with sweet and savoury goods such as hot chocolate, crepes and a mulled wine garden.
There will be fairy lights and Christmas carols alongside Christmas trees and canons shooting out fake snow.
Mr Hernandez said he hoped the event would give Canberrans a taste of Europe as they remain stuck in Australia.
"We are really excited to bring this unique Christmas in July experience to Canberra," he said.
"In a time when we cannot travel, we hope to transport people to a magical and festive place and bring the feel of Strasbourg's most beautiful winter Christmas market to Australia's capital city."
The event started at The Rocks in Sydney in 2018, and was also held there in 2019.
