“Based on in-depth assessments by Norwegian health authorities as well as clear demands from Norwegian political authorities, it is now clear that Norway cannot be an organiser of the women's European handball championship,” the federation said.
Denmark is now considering whether to host the event on its own.
Strict restrictions are however currently in place in the North Jutland region, where some of the matches were due to be played, after a mutated version of the virus was found in the country's mink population, infecting 12 people.
The European Handball Federation “very much regrets the decision of the Norwegian government”, it said in a statement, referring to the Norwegian health authorities' refusal to grant exemptions to the strict measures it has imposed.
Under current rules, if a player or team official tests positive for the virus the entire team must quarantine, as well as the teams that it has opposed just prior.
The rules are less strict in Denmark.
“Alternatives are being sought with the Danish Handball Association and additional information will be released on Tuesday at the latest,” the European Handball Federation said.
Norway had been due to host around 60 percent of matches, including the final, in Trondheim.
While Norway has been one of the countries in Europe least affected by the pandemic, it has seen a recent uptick in cases which has led authorities to introduce a series of measures, notably on cultural and sporting events.