General manager of the Los Angeles Memorial Coliseum, Patrick Lynch, organizer of the games, said Monday that FIFA prohibited him from staging the July 4 event after all arrangements had been made.
The game was originally set for July 5 at the Coliseum before being moved to July 4. The organizers waited until Monday to announce the cancellation.
A team of South American all-stars was to face a squad from the rest of the world.
Officials from FIFA or CONCACAF did not attend the news conference.