Oxfam New Zealand executive director Rachael Le Mesurier said the safety and welfare of all participants, supporters, volunteers and community members was paramount in the difficult decision.
"We have been assessing the risks and have been informed at every stage of our event planning by government and health authority instructions on the issue of COVID-19 containment."
"For the event to be cancelled four days out is hugely disappointing for all involved," she said.
"It takes a great commitment of time and energy by walkers, and their supporters, to prepare for this event.
The organisation thanked all potential participants for their contribution to the event and the achievements made so far in training and fundraising.
"We are thinking of them as they have to cancel their trips, their accommodation and most of all, their hopes and aspirations in getting over that line together," Le Mesurier said.
She said her sympathies also went out to the Whakatāne community who would be hard hit by this fresh challenge.
"Dealing with the challenge posed by the global Covid-19 pandemic is one that we must all face as a community cooperating together."
While the event is not going ahead, the money raised to date was still needed and would be used to continue Oxfam's work into 2020.
It would provide funds in ongoing humanitarian relief, including preparation for the spread of this pandemic to the Pacific, as well as finding lasting solutions to the challenges of climate crisis, poverty and injustice in the Pacific and beyond.
Oxfam has been involved in humanitarian responses to epidemics, such as the Ebola crisis.
"As a world leader in this area we appreciate the measures that are necessary to protect our community," Le Mesurier said.
Oxfam Trailwalker is part of an international series of 17 events held worldwide in 10 countries. Over the years, the event has raised hundreds of millions of dollars internationally for Oxfam's life-saving work
Donations to teams are still open and can be made through the Oxfam Trailwalker website.