The festival will run in an online format, meaning works will still be able to be viewed and purchased.

Now in its 19^th year, the renowned event was set to run across seven indoor galleries, plus vineyards and other outdoor locations across the Wollombi and Laguna villages from September 11 to 26.

Festival director Susan Leith Miller said it was disappointing to cancel the event, but as about 60 percent of its audience come from Sydney and the Central Coast - which will remain in lockdown until at least August 28 - it wasn't viable to proceed.

"We have been monitoring the COVID situation in NSW and at the moment we don't feel it is in the best interests for the safety of our rural community to encourage large numbers of people to be travelling here," she said.

"Many of us have put in an incredible amount of work and we thank every volunteer, as well as all the sculptors who have worked for many months to put on this show.

"The good news is that most of the preparation which has been done won't be wasted.

"We are now working on an exciting new idea to help this year's finalists. The Wollombi Valley Sculpture Festival will be an online event for 2021."

Ms Leith Miller said work was still being done to bring the idea to fruition, but more information would be available soon.

She said the organisers were thrilled with the quality of this year's submissions. From 301 entries, the selection panel chose 150 finalists, including 87 indoor and 64 large outdoor sculptures.

Ms Leith Miller said the dates for next year's festival will be September 10 to 25.

"Hopefully by 2022 we will be free of COVID and as it will be the festival's 20th year we are planning a huge celebration," she said.

Stay tuned to sculptureinthevineyards.com.au for more information.