The Pete Doherty-fronted band had been due to play at Middlesbrough's TFM Soundworks on Friday (December 20). Around 1,200 tickets had been sold for the event.
Organisers at the venue received an email from the band's agents Primary Talent at around 2.30pm on the day of the event, the Evening Gazette reports.
The email read: "I do not know if you are aware yet, but Babyshambles will not be playing tonight. I'm very sorry about this and the last-minute nature of the cancellation."
A statement later added: "Babyshambles are very sorry to announce they cannot make tonight's show in Middlesbrough. They were looking forward to ending the year in the North-east, but due to illness will not be able to perform.
"They are hoping to come back and play again as soon as possible in the new year and are deeply sorry for any disappointment."
TFM Soundworks' events and marketing manager Junior Masandi said: "I thought it was a joke. All the equipment was on stage, they were supposed to soundcheck between 2-3pm."
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The venue has assured fans that full refunds will be issued for tickets on Monday.
Fan Kelly Lisle told the newspaper: "We're gutted. I've seen them five times and never been disappointed. Pete Doherty has a bit of a reputation, but this is so late notice."
The last message on Babyshambles' Twitter account, posted on Wednesday (December 18), makes no reference to illness or cancellation.
Friday! Friday Friday Friday. Middlesbrough on Friday. Yep
— Babyshambles (@babyshamblesuk) December 18, 2013
Babyshambles released their third studio album Sequel to the Prequel in September this year.
