The move follows funding issues, with the French government reneging on an original promise of £52million for the 2025 tournament.
It is the second U-turn by hosts North America bailed out in 2018 amid financial concerns.
International Rugby League chair Troy Grant admitted it was "difficult to express how disappointed I am" in another hammer blow for the sport.
RFL chair Simon Johnson said it would continue to support the French game on "such a difficult day" while the IRL will meet tomorrow to start discussing contingency plans.
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