The tournament was due to take place in Milton Keynes between February 17 and 21 but the governing body said projections of its economic position left them with no choice but to pull out.

An innovative event was planned as two courts were due to be laid at Middleton Hall, which is part of The Centre:mk shopping mall.

More than 50,000 people were expected to be welcomed to the competition in the town where Badminton England is based.

"Badminton England and Badminton Europe have been in close dialogue around the situation since it became clear there was a risk to the staging of the Championships in England, and every effort has been made to find a solution, but unfortunately it has not been possible to find a mutual agreement upon how to host the event in Milton Keynes as originally agreed," a statement said.

Adrian Christy, the chief executive of Badminton England, added: "It is with great disappointment that Badminton England will not be able to pursue this opportunity, not only hosting the European Mixed Team Championships, but in staging it in such an innovative way, positioned among such a huge number of people. 

"The exposure of English badminton, European badminton and the Championships themselves was significant and is an approach that we'd love to revisit in more settled financial times. 

"But under the current circumstances, we unfortunately see no other option than to withdraw from our bid and not host the event in 2021.

 "These are truly unprecedented times and the financial impact of the coronavirus situation is creating significant challenges, operationally and financially, to Badminton England and we are having to make some tough choices about where we prioritise our financial resources that have been severely impacted by the pandemic.

"The sustainability of English badminton must be our first priority, and this includes our clubs, coaches, leagues and County Badminton Associations. 

"We must be ready to ensure badminton in England is ready to go again when the time is right and we could not risk diluting the support desperately needed by our grassroots community by pursuing the investment necessary to host the Championships."

England has not hosted the mixed team event since Liverpool did so in 2009.

Jimmy Andersen, the deputy general secretary of Badminton Europe, said: "We were looking very much forward to hosting the event in Milton Keynes, and to work closely together with the experienced event staff of Badminton England. 

"We truly appreciate the openness which we have been shown throughout the whole process, but we are now at a point where we have to look forward, and we fully understand that Badminton England is not able to commit to what they initially intended. 

"We will now consider our next steps towards where to host this prestigious and important event, and we welcome any interest from our membership in hosting the event in February together with us."