Thousands of Gers fans were due to be inside Bloomfield Road on Wednesday evening but the home side have announced they have a number of positive Covid cases in their squad.
A Rangers statement read: "Due to an ongoing Covid-19 related issue within the Blackpool camp, both clubs have decided that it is sensible to cancel this fixture.
"We recognise that this will be frustrating for both set of fans, especially the 4,500 Rangers fans who have bought tickets.
"Nevertheless, the ongoing challenges presented by Covid-19 require pragmatic and difficult decisions. The health of our players and staff is imperative.
"We advise fans to not travel to Blackpool now the game has been cancelled."
Meanwhile, summer signing Nnamdi Ofoborh has vowed he will return to action after a scan revealed a heart issue.
The start of the 21-year-old former Bournemouth midfielder's Gers career has been put on hold after heart tests revealed what manager Steven Gerrard described as a "red flag".
Ofoborh is set to see some specialists and undergo more tests in the coming weeks.
He wrote on his Instagram account: "God has a purpose for your pain, a reason for your struggles and a reward for your faithfulness. God is the only reason I've made it this far. I will be back."