Vodafone have confirmed to Sky Sports News HQ that they have shelved plans to pay £20m for the naming rights at London Stadium.
The deal would have raised £3.33m a year for the London Legacy Development Corporation (LLDC).
Vodafone are expected to announce huge trading losses, reportedly up to £4bn.
The company is keen to avoid any more negative publicity after a terror attack on the Vodafone Arena in Istanbul, home to Besiktas, which killed 38 people last year.
Sky sources understand the deal was always to sponsor the London Stadium not West Ham and that the deal offered wasn't right for their brand and target audience.
It is also understood the deal for the naming rights would not have included rights to athletics events and concerts and would only have been applicable for football games.
The decision not to sponsor the London Stadium was made two days before last month's dawn raids by HMRC at the offices of West Ham, a separate source close to the deal has confirmed.