The race could yet be rescheduled for later in the season but the 2011 F1 campaign will now begin in Australia on 27 March.
Ã¢â‚¬Å“At the present time the countryÃ¢â‚¬â„¢s entire attention is focused on building a new national dialogue for Bahrain,” said Crown Prince Salman bin Hamad Al Khalifa.
Ã¢â‚¬Å“Although Bernie Ecclestone had graciously made clear that a decision on the race was entirely BahrainÃ¢â‚¬â„¢s to make and was not yet required, we felt it was important for the country to focus on immediate issues of national interest and leave the hosting of BahrainÃ¢â‚¬â„¢s Formula 1 race to a later date.
Ã¢â‚¬Å“After the events of the past week, our nationÃ¢â‚¬â„¢s priority is on overcoming tragedy, healing divisions and rediscovering the fabric that draws this country together; reminding the world of the very best that Bahrain is capable of as a nation once again united.”
No decision has yet been made on a potential new date for the race, which was due to take place from 11-13 March.
F1 Supremo Bernie Ecclestone said: Ã¢â‚¬Å“It is sad that Bahrain has had to withdraw from the race, we wish the whole nation well as they begin to heal their country.
Ã¢â‚¬Å“The hospitality and warmth of the people of Bahrain is a hallmark of the race there, as anyone who has been at a Bahrain Grand Prix will testify. We look forward to being back in Bahrain soon.Ã¢â‚¬Â
The final pre-season test, due to take place in Bahrain from March 3-6 has also been cancelled, with teams now returning to the Circuit de Catalunya near Barcelona from 8-11 March before heading to Australia for the first race.
The decision was made following discussions between the FOTA (Formula One TeamsÃ¢â‚¬â„¢ Association) on Monday.
The Australian Grand Prix at Albert Park in Melbourne on 25-27 March will now be the opening round of the 2011 season.
MORE: The latest football news
MORE: The latest tennis news
BIOGRAPHY: Adam Lallana
BIOGRAPHY: Nacho Monreal