Sydney's annual festival of music and lights will not go ahead, joining the wave of cultural, sporting and religious events that have been axed in response to the government's practical ban on gatherings of more than 500 people.

The state government's cancellation of the Vivid Festival, which was scheduled to start in late May, suggests that other events set to happen in the interim, including Anzac Day commemorations, may also be postponed.

The opening night of Vivid festival in 2019. Credit:Wolters Peeters

A tweet on the Vivid Sydney official account early on Sunday said the 2020 festival "has been cancelled on the recommendations of the Australian Government and health authorities regarding non-essential, organised gatherings of more than 500 people."

Vivid Sydney "will shine brighter than ever in 2021", the tweet said.