The exhibition, billed by German organisers as offering the first opportunity to see the works as a collection outside Iran since the 1979 revolution, originally was supposed to open at Berlin's Gemaeldegalerie December 4.
In November, organisers said changes at Iran's culture ministry were causing delays.
The Prussian Cultural Heritage Foundation, which oversees Berlin public art museums, announced Tuesday that it has terminated "with great regret" its cooperation agreement with the Tehran museum.