Mayor Greg Conkey said the decision was made for the public's safety and in compliance with current NSW public health orders as a result of the coronavirus pandemic.

"We realise this will be disappointing for many in the community, but we are confident everyone understands the challenging circumstance we, along with the rest of the nation, are facing," he said.

"While restrictions on gatherings and movements may ease following Christmas, the likelihood of this occurring is unknown at this stage.

"The planning for this type of event requires a reasonable lead-in time to organise, so the decision to cancel has been made now."

IN OTHER NEWS:

It is not the only council-related event to be affected, with the Mayor's Christmas party and the council's staff Christmas party also cancelled.

Cr Conkey said at this point, the formal Citizen of the Year Awards ceremony on January 25 will still go ahead.

A decision regarding the Australia Day community event on January 26 is expected to be made soon, pending COVID health restrictions and requirements.