Backtracking city officials decided there will be no marathon on Sunday.

The move comes after intense criticism of Mayor Bloomberg’s decision to hold the race. There has been no decision yet whether to reschedule the race, and officials called it a “joint decision” between the city and race organizers.

Deputy Mayor Howard Wolfson said tonight at a press conference that Mayor Bloomberg pledged “all assets” that would have been used for the race “will be redeployed to people who need it.”

The news came hours after Mayor Bloomberg defended the controversial decision to allow the marathon to go forward, comparing it to the race that was held right after Sept. 11.

Bloomberg initially defended the call, saying that he has spoken with former Mayor Rudy Giuliani, who endorsed holding the race.

Bloomberg issued the following statement moments after news of the cancellation came out:

“The Marathon has been an integral part of New York City’s life for 40 years and is an event tens of thousands of New Yorkers participate in and millions more watch. While holding the race would not require diverting resources from the recovery effort, it is clear that it has become the source of controversy and division”

“The marathon has always brought our city together and inspired us with stories of courage and determination. We would not want a cloud to hang over the race or its participants, and so we have decided to cancel it.”

“We cannot allow a controversy over an athletic event – even one as meaningful as this – to distract attention away from all the critically important work that is being done to recover from the storm and get our city back on track. The New York Road Runners will have additional information in the days ahead for participants.”

Sources said the Road Runners were trying to decide whether to cancel the race completely this year or postpone it, probably for two weeks.

“They have insurance,” said one source.

“They have to decide what happens with the insurance and what happens if half the people (runners) can’t do it later.”

The source said it was the mayor who made the call to cancel the race.

But racing officials didn’t put up much of a fight.

“I think they understood,” said the source. “They were reading the newspapers.”

Another option, to hold race entirely in Manhattan was discussed, but ruled out.

Meanwhile, 94,500 beleaguered customers in the East Village, Lower East Side and Chelsea had power restored just before 6 p.m. today, Con Edison reported.

“People of the EV &; LES: Resist urge to French kiss electrical sockets in celebration. Hug a @conedison worker instead,” tweeted Kat Kinsman, whose twitter handle is kittenwithawhip.

The lights were back for 67,000 in the neighborhood roughly bordered by 14th Street on the north, Broadway on the West, Canal Street on the south and the East River. Another 27,500 were restored in Chelsea.

Still, some 131,500 power-starved Con Ed customers in Manhattan are still without electricity tonight.

Also, a marathon trip into Manhattan before tonight’s Knicks-Heat game prompted Heat superstar Dwayne Wade to make a big donation to the city.

After questioning who was assisting the victims of the storm — and why he and the rest of the Miami Heat were even in New York to play the Knicks on Friday night with so many people still facing so many difficulties because of the massive system — Wade said he would give the equivalent of his paycheck from the game to relief efforts.

That gift: Roughly $210,000, before taxes.

“I just felt there were bigger things to be concerned about than us being here to play a basketball game,” Wade said Friday, one day after the Heat needed nearly three hours for the 6-mile ride from the airport to their hotel. “Obviously, sports is things that takes people’s minds away from things, but, you know, I think there’s bigger things that need to be done here in the city.”

— with Bill Sanderson and AP