Due to New Zealand's shift to the Covid-19 red light setting, the Queenstown match on February 14 had been called off.
The franchise, though, hoped the match could still be played in a different location.
"This is a difficult pill to swallow for the Highlanders," Highlanders chief executive Roger Clark said.
"We would also like to acknowledge all the local contractors and suppliers who have worked with us for the last two years and the local community, especially kids, who ultimately lose out at the end of the day."
