The production was due to open at the Northampton's Derngate Theatre on 9 October 2012 and visit a host of UK venues through to early December.
Loose Women presented Jane McDonald and Sheila Ferguson, a former member of 70s soul group The Three Degrees, were set to star in the production, which features hits from Boney M as well as hits from other groups which had been produced by Boney M originator Frank Farian.
McDonald confirmed the cancellation via Twitter and her Facebook page, writing "I've just received a call to say that the Daddy Cool UK Tour has now been officially cancelled. I'm really disappointed it will not be going ahead and sorry to so many of you that had been looking forward to seeing me at the shows."
Meanwhile, Ferguson also took to Facebook, saying "Dear Friend'ssic, I just received a call from my agent to say that the Daddy Cool tour of the United Kindgom has now been officially cancelled. I am sure that anyone who has already bought tickets will be reimbursed in a matter of due course."
The news comes as another production of Daddy Cool in Mallorca was cancelled early due to low audience numbers. A previous UK tour was also axed 2007, which followed the show posting early closing noticed for its West End run at the Shaftesbury Theatre.