CAF made the decision on Friday after a meeting with its executive committee.
Cameroon's ability to host the finals was first questioned when CAF announced in July a year ago that the tournament would have eight additional teams and only countries capable of putting on world-class tournament, with complete facilities and extensive infrastructure would be allowed to stage the event.
Morocco, which lost out to a joint United States-Canada-Mexico bid for the 2026 World Cup, has already been touted as a replacement host.
There are close to six months to the kick off of the long awaited 2019 Africa Cup of Nations (AFCON) finals.
"After significant debate and having received detailed updates from numerous inspection visits over almost 18 months, CAF has noted that a number of compliance conditions have not been met", CAF statement read.
At that time, a report by the last inspection team to Cameroon revealed "a significant delay as far as the delivery of infrastructure is concerned".
"I don't know whether there are statistics but many have been injured during CANs due to the condition of the organisation".
Reigning champions Cameroon has been stripped of the right to host next year's African Cup of Nations.
CAN, also called AFCON, will take place June 15 to July 13, 2019.
The 2013 finals were to be held in Libya but the security situation there meant they were moved to South Africa.
And it will be the first to feature 24 teams - up from 16 at the 2017 edition in Gabon.