Jay Z, Miley Cyrus and The Killers are part of the 80-act line-up due to play at the Woodstock 50 festival on 16 to 18 August.
But on Monday, the owners of the planned site in upstate New York, Watkins Glen International, said they would no longer be hosting the event.
“Watkins Glen International terminated the site license for Woodstock pursuant to provisions of the contract. As such, WGI will not be hosting the Woodstock 50 Festival,” it said in a statement.
The festival, which is backed by the co-producer of the original 1969 Woodstock festival and was billed as “three days of peace and music”, has faced numerous problems.
In April, the event was thrown into chaos when its Japanese lead investor, Dentsu, announced it would be cancelling the festival as it said it could not ensure the “health and safety of the artists, partners and attendees”.
The Woodstock 50 organisers later won a court decision allowing the festival to go ahead, with a Supreme Court judge ordering that Dentsu had no right to cancel the event.
Gregory Peck, one of the festival’s organisers, said in a statement: “Woodstock 50 is on!”
In a message on its website, Woodstock 50 said: “Our intention holds firm. To deliver a world-class, once-in-a-lifetime festival to celebrate the 50th Anniversary of Woodstock.
“To honour a cultural icon that changed the way we think about music and togetherness… and will do so again”.
Other issues have plagued the event, including obtaining permits and arranging security and sanitation.
Tickets were due to go on sale on 22 April but are still yet to be released, with 66 days to go until the festival.
The event is expected to attract about 60,000 people.
Organisers have not commented on whether the festival will be able to go ahead at a different site.