The pair, who dated for over a year, have decided not to go ahead with their November wedding, reported E! News.
"Scotty and I had a great year together as we traveled the world and crossed a lot of things off our bucket list," Sheen said.
"She's a terrific gal-but we've mutually decided to go our separate ways and not spend the rest of our lives together. I've decided that my children deserve my focus more than a relationship does right now. I still have a tremendous fondness for Scotty and I wish her all the best," the actor said.