The Hungarian government had on Thursday announced a ban on all large gatherings until August 15.
Organisers of the Hungarian Grand Prix have said that it would be impossible to hold the Formula One race in front of spectators this year.
The Hungarian GP is one of the remaining events in the current season of F1 as the coronavirus pandemic forced a slew of cancellations and postponements over the past two months.
The Hungarian government had on Thursday announced a ban on all large gatherings until August 15.
"The Hungaroring team has been waiting until the very end and is still working with the international rights holder, but it has now become clear that we cannot hold the 35th Formula 1 Hungarian Grand Prix in front of spectators despite all our efforts," said a statement from the organisers at the Hungaroring, the venue for the race.
"In recent weeks, we have been constantly voicing that we are open to any solution in order to host the Grand Prix again this year, and it became clear yesterday that all this is only possible behind closed gates.
"We will continue to work with the international promoter to find the best possible solution."
Earlier, the International Automobile Federation (FIA) announced that the shutdown period for Formula One drivers has been extended from 35 to 63 consecutive days in light of the ongoing coronavirus pandemic which has so far claimed more than 2.2 lakh lives worldwide.
In a statement, FIA said: "The World Motor Sport Council has approved a further extension to the shutdown period for competitors and Power Unit manufacturers in the FIA Formula One World Championship in light of the ongoing COVID-19 pandemic."
"All competitors must now observe a shutdown period increased from 35 to 63 consecutive days during the months of March, April, May and/or June. 50 days after the start of their shutdown period, upon application by a competitor, and subject to the prior written approval of the FIA, each competitor may use the services of a maximum of ten personnel to work remotely on long lead time projects," it added.
