Around six million people from across the globe gather in the Bavarian state capital of Munich annually to attend the festival, reports Xinhua news agency.
The 187th Oktoberfest was set to take place from September 19 to October 4.
"The risk is too high. It was decided together that the Oktoberfest would be canceled this year," Soeder told a press conference.
"Based on the current situation, I can not imagine that such a large event would even be possible at that time."
Germany's latest lockdown measures now include a ban on major public events until August 31.
The country has reported 147,065 coronavirus cases with 4,862 deaths.
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