The decision was heavily criticised by human rights activist and former FIA chief Max Mosley.
In a statement, Zayed Alzayani, the circuit chairman said, "Whilst Bahrain would have been delighted to see the Grand Prix progress on October 30th ... it has been made clear that this fixture cannot progress and we fully respect that decision."
He added, "We want our role in Formula One to continue to be as positive and constructive as it has always been, therefore, in the best interest of the sport, we will not pursue the rescheduling of a race this season."
Earlier, Bernie Ecclestone, the F1 President had said that the Bahrain Grand Prix could not go ahead as the teams had raised objections on logistical grounds calling the revised calendar 'unrealistic'.
As a result of the cancellation, the inaugural Indian Grand Prix, which was pushed back to December to accommodate the Bahrain race, will now be held on its original date of October 30. However, Bahrain has already been scheduled as the season-opener for 2012.