According to two administration officials familiar with the decision, Tillerson rejected a request by the State Department's Office of Religion and Global Affairs to host the reception marking the Eid ul-Fitr, the end of the holy month of Ramazan, which begins Saturday in many countries.
Since 1999, Tillerson's five Republican and Democratic predecessors have hosted either an Iftar dinner to break the fast during Ramazan, or an Eid ul-Fitr reception at the end of the month-long holiday, the CNN reported.
The White House and State Department commemorate other religious traditions, including a Jewish Passover Seder, as well as Christmas and Easter holidays.
But the Ramazan event, usually attended by members of Congress, diplomats from Muslim countries, Muslim community leaders and top US officials has become a symbol of US efforts to engage with the Muslim world.
More From This Section
"We are still exploring possible options for observance of Eid ul-Fitr, which marks the end of the month of Ramazan," a State Department spokesman said.
"US ambassadors are encouraged to celebrate Ramazan through a variety of activities, which are held annually at missions around the world," the spokesman said.
Offices like the one dealing with religious outreach are widely expected to be scrapped as part of the restructuring, although no final decisions have been made.
On Friday, Tillerson had issued a statement marking the start of Ramazan, calling the holiday "a month of reverence, generosity, and self-reflection."
"Most importantly, it is a cherished time for family and friends to gather and give charity to those who are less fortunate. This time reminds us all of the common values of harmony and empathy we hold dear," he added.
"At its core, the spirit of Ramazan strengthens awareness of our shared obligation to reject violence, to pursue peace, and to give to those in need who are suffering from poverty or conflict," Trump's statement had said.