This decision comes as the team is currently ranked 16th in the Premier League and is set to compete in the Europa League final next week.
Last year, the awards night was also cancelled, despite the team finishing eighth and winning the FA Cup against their local rivals Manchester City.
Additionally, the team has also ruled out the possibility of holding a victory parade if they win the Europa League final against Tottenham next Wednesday.
Instead, a family barbecue will be held at the club's training centre, Carrington, to celebrate any potential win.
Manchester United is experiencing its worst league finish in nearly 50 years, with this season's ranking being the lowest since the 1973-74 relegation campaign.
The annual player awards will still take place, but they will be presented on the pitch at Old Trafford before the final home game of the season against Aston Villa on 25 May.