In a statement, Soccerex organisers revealed Andre Lazaroni, Rio de Janeiro’s state secretary of sport, "took the political decision to withdraw support from the Soccerex Global Convention" owing to the ongoing civil unrest in the country.
The company said the government's decision was "cavalier" and "cruel", and plans to sue for compensation.
Soccerex was set to take place between 30 November and 5 December at the Maracanã Stadium in Rio. The news comes just seven months before the start of the Fifa 2014 World Cup in Brazil.
The statement continued: "Preparations for the event at the Maracanã Stadium were well advanced with content planned, speakers confirmed and partnerships in place.
"To be summarily cancelled in such a cavalier fashion is extremely frustrating but nevertheless it has happened and is in contravention of all of the contractual obligations of the Rio state government, who have been notified of our intention to instigate legal proceedings for substantial compensation."
The Rio state government hit back at the claims made by Soccerex, explaining funding was the issue behind the event’s cancellation. A statement read: "The state guarantees the security for many events in Rio, including the upcoming New Year celebration, with millions of people on the Copacabana beach, as well as the Carnival, the World Cup next year.
"The Rio de Janeiro state government encouraged the Soccerex organisers to seek culture or sport incentive funding to finance the event, but the organisers failed to do so."
Duncan Revie, chief executive of Soccerex, said: "On behalf of all at Soccerex, I would like to apologise to every business, football club, league, federation and media organisation affected by this news. This unique and cruel conclusion to our time in Rio was completely out of our hands and everyone who has attended a Soccerex event over the last 18 years will know this is not how we do business."
He added that the company is now looking forward to its next event in Manchester, which takes place on 6-10 September 2014 at the Manchester Central Convention Centre.
Andrew Stokes, chief executive of Marketing Manchester, hosts of the Soccerex Global Convention 2014 -17, added: "I am sorry to hear about the unfortunate circumstances surrounding the cancellation of the Soccerex Global convention in Rio.
"Manchester is looking forward to becoming the home of Soccerex for the next four years and I am certain that together we will build on the illustrious past that both the event and the city has enjoyed".
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