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The event, which is played every four years and features 24 national teams from across the continent, was due to be held in 10 cities from June 16 to July 16 next year.
The week-long festival will reach its peak on Pooram Day, on May 10.
The 19-year-old is the youngest player since start of the ATP Tour in 1990 to defeat three top-five players at the same event.
Three-time major winner Murray was set to face Djokovic for the 37th time in a highly anticipated clash on clay at the ATP Masters 1000 event in the Spanish capital.
The All England Lawn Tennis Club, which hosts the grass court Grand Slam, took the decision in the wake of Russia's invasion of Ukraine and the stand was swiftly condemned by the men's and women's tours.
The The All England Lawn Tennis Club also added that banning Russian and Belarusian players from this year's Wimbledon championships was the only viable option under the guidance provided by the British government.
"We want to find a resolution that Peng can be comfortable with, the Chinese government can be comfortable with, and we can be comfortable with," said WTA chief Steve Simon.
Rublev galloped to an early lead and barely gave his opponent a chance as he closed out the match with a powerful forehand winner for his first win over Djokovic and 11th career title.
The victory helped Tsitsipas join Rafael Nadal as the only active player to win consecutive titles at Monte Carlo, with the likes of Juan Carlos Ferrero, Thomas Muster, Bjorn Borg and Ilie Nastase also achieving the feat during their playing days.
The former world No. 1 has called for discussions on the toll tennis is taking on players' mental health.