The Tokyo Olympics will be held without spectators.
Organisers of the games say events in Tokyo venues will take place behind closed doors, with fans unable to attend.
The decision comes just two weeks before the opening ceremony of the games.
In comments quoted by Kyodo News, organising committee president Seiko Hashimoto said: "It is extremely regrettable that the games will be staged in a very limited manner in the face of the spread of novel coronavirus infections.
"I am very sorry for ticket holders and local residents who were looking forward to the games."
Overseas spectators had already been banned from attending the games, which get underway on July 23rd.
It comes as Japan's Prime Minister Yoshihide Suga declared a state of emergency following the highest COVID-19 numbers in two months.
There has been significant opposition in Japan to the games going ahead as planned, amid a slow vaccine rollout and continued coronavirus outbreaks in several major cities.
Tokyo's latest state of emergency is set to continue until 22nd August.
