The cancellation was in response to recent remarks made by student representatives which "undermined the basis for a constructive dialogue", Chief Secretary Carrie Lam Cheng Yuet-ngor said at a press briefing, South China Morning Post reported.
The decision comes just hours after the federation announced another round of non-cooperation movement, in which they called on more citizens to join the Occupy Central movement if dialogue with the government failed to offer substantial changes to the city's political reform.
Lam said such remarks went against the principles behind the coming talks, adding that when, and whether, or not the "illegal occupation" would end should not be used as a bargaining chip in the dialogue, or in any way be linked to the talks.
Any discussion on reform should be within the framework of the Basic Law, Lam said, citing the other "principle" behind the talks.
"We regret to make such announcement as we know the public's expectations for dialogue remains high," Lam said.
She added the government had not, and would not, set prerequisites for future dialogue, which could be resumed when student representatives showed an "equal sense of sincerity" towards constructive talks.