The decision was made on Monday, following meetings, after the Prime Minister announced on Friday that all 'non-essential' gatherings of more than 500 people should be cancelled due to the risk of Covid-19, the coronavirus, spreading.

Eventually it was decided the festival could not proceed.

Initially the festival's Facebook page provided some hope when it carried a message on the weekend, saying the festival would go ahead as planned as it was still some time away, at the end of next month.

But after Monday's meeting, an update informed people that the decision had been made to cancel.

Council is now communicating directly with all ticket holders to let them know how to receive a refund on their tickets.

"We ask that all ticket holders be patient and allow us time to work through the process," a statement from Glen Innes Severn Council said.

Margot Davis, Council's Manager Economic Development, said they had received a lot of feedback from festival fans to continue with the festival despite the COVID-19 public health issue.

"However the Public Health Order 2020 makes this impossible. Whilst this is devasting for all our festival attendees, suppliers, local businesses, performers, sponsors and partners, we recognise the importance of proactive measures in order to contain the pandemic," she said.

Already, several events across the New England region have cancelled, including Seasons of New England in Uralla, which was due to be held at the end of the month and included stallholders from the local area.

The Department of Education has cancelled all school assemblies, excursions and sports carnivals.

The virus, which has been compared to the outbreak of the Spanish flu across Australia in 1919, is easily spread among people.

Speaking on the weekend, Northern Tablelands MP Adam Marshall described the shutting down of events as "just the beginning". He said the real concern was the impact it could have on the health system.

On Sunday, NSW recorded 22 new cases of coronavirus, taking the state total to 134. There have been no cases reported in the local area.

The four-day Celtic Festival has been held annually in the first week in May, and this year's festival had booked more than 200 different events. It is the signature event for the local area, providing important cultural opportunities to Celtic clans and locals alike.

The Gordon Creighton Cup, which was scheduled to be in Inverell this year due to work on Mead Park, has also been cancelled.