Brothers Joel and Benji Madden were due to play the Boshe VVIP Club in Kuta on April 22.
But the Australian Government has issued a warning urging them not to travel to the country, saying there is a 'very high threat of terrorist attack'.
The brothers have issued a statement saying: 'We were really looking forward to appearing at the JD Set in Bali next week, but safety has to come first so obviously the right call has been made.'
The gig will be rescheduled to another time and venue.
In 2002, bombers killed 202 people including 88 Australians in an attack on the nightclub area of Kuta.