Lalit Modi, the commissioner of the Champions League, told the Daily Telegraph: "This was a very difficult decision to make but I am keeping in mind the problems the teams would have faced. The teams had all agreed to come but it was impossible to find another venue and get it ready in time.
"The tournament will now take place in the new year in India. It doesn't matter if it clashes with the international programme as this is a club level tournament."
Middlesex had earlier today put their trip on hold until given the all clear by the authorities.
The decision by Middlesex follows a similar move by Cricket Australia and the South African board, who also have teams due to take part in the competition.
Middlesex were due to stay at the Taj Mahal hotel today, where three people were killed by terrorists and a hostage situation developed.
The $6.5 million Champions League was due to begin on Dec 3 with Middlesex set to play Victoria, the Australian Twenty20 champions, in Mumbai.
Reports in India suggested the three matches in Mumbai had been shifted to Bangalore but the organisers were simply unable to clear up the logistics in time.
A spokesman from Cricket South Africa said: "The safety of our players is of paramount concern to us at all times. We will have to wait for guidance from the Department of Foreign Affairs, as well as the people on the ground in India before we take any decisions."
Two South African teams, the Dolphins and Titans, were due to arrive in Mumbai over the weekend.
Meanwhile, Shane Warne, the captain of IPL winners the Rajasthan Royals, is stranded in Singapore after cancelling his trip to Mumbai.
CA last night suspended all travel to India with two Australian teams set to compete in the Champions League and several other leading players, including Matthew Hayden and Mike Hussey, due to play for Indian sides.
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