The five-day camping event was scheduled to take place from 29 July to 2 August on farmland on the Mendip Hills, and was expecting to attract 15,000-20,000 people.
Mendip District Council and emergency services were concerned that organisers would fail to address a number of public safety and crime and disorder problems in time for the event.
A statement on reads: "Following threatened injunction proceedings in High Court by Mendip District Council, supported by Somerset & Avon Police and having taken extensive advice from a prominent QC and other eminent lawyers, the directors of the Big Green Gathering have been left with no other option than to voluntarily surrender the licence for the Big Green Gathering 2009.
"The event will now not take place and the directors' advice and request is that no one intending to attend the event should attempt to do so, as the site is now closed and they are likely to be turned away by Somerset Police.
"It is our intention to avoid any form of confrontation or public disorder in regard to this and it is our earnest hope that all those involved will follow this advice.
"It is with great sadness that we have been forced into this position and we express our profound apologies to all those concerned."
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