Joshi was to be the chief guest at the camp organised at Jayapur, the village adopted by the Prime Minister in his parliamentary constituency Varanasi.
Joshi is reportedly said to share an uncomfortable relationship with Modi.
In an emergency meeting convened last night, the organisers decided to call off the event stating it was "unnecessarily getting dragged into political controversy".
"We didn't pay any heed to Patel's words and were going ahead with the blood donation camp in the village. But later too much pressure from various sides in past two days forced us to cancel this event," he added.
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When contacted, Jayapur village head Durgawati Devi and his representative remained unavailable for comment.
Meanwhile, Joshi, who is currently in Aligarh, said he has been apprised of the cancellation of the event.