The Madeira Islands Open was cancelled due to bad weather on Sunday and the European Tour will look to stage the event later in the year.
Torrential rain meant that no play was possible in the second and final round at Santo da Serra on Sunday.
The tournament had already been reduced to 36 holes for the second year in succession after no play was possible on Thursday due to heavy winds throughout the day.
Further strong winds on Friday caused a delay before rain finally ended play early with half of the field still to complete their rounds.
Heavy rain which flooded the course caused further disruption on Saturday and with yet more bad weather forecast for Sunday, the decision was taken to make it a 36-hole event.
But even that proved impossible and it is thought to be the first time a European Tour event has been cancelled due to bad weather since the European Grand Prix in 1998.
Keith Waters, chief operating officer of the European Tour, said: "The Madeira Islands Open is a hugely important event for The European Tour so it is disappointing for everyone concerned that we have been forced to cancel this week.
He added that the Tour was already in talks with the organisers over a new date and added: "We must now make every effort to make sure that the Madeira Islands Open takes place this year."