Despite the row, United States ambassador Woody Johnson recently outlined his expectation Mr Trump would visit the UK early in 2018, as he expressed his hopes the President would open the new London embassy.
The embassy's new cube-shaped building is designed by American architect KieranTimberlake and will be open for business on Tuesday.
"Security concerns after September 11 meant we had to move to a location that could better protect American citizens and our British neighbors", he wrote in an article for London's Evening Standard newspaper.
He took to Twitter to say his first trip to Britain since being elected previous year was off amid claims he feared mass street protests and blamed his predecessor Barack Obama for selling off the former embassy in Grosvenor Square "for peanuts".
A Trump visit has been on the cards since British Prime Minister Theresa May visited the United States a few days after Trump's inauguration a year ago.
The Mayor said Trump's visit would "without doubt have been met with mass peaceful protests".
May's spokesman told reporters Trump was welcome in London and that the invitation to visit had been accepted, although no date agreed.
Mr Trump blamed the cancelled visit on the "off location" of the new embassy, which is moving from Grosvenor Square in Mayfair to Nine Elms, south of the Thames.More news: India Welcomes More Foreign Investment in Retail and Airlines
The president, however, had become fed up with all the criticism and considered it an affront not only to his administration, but to his country, a White House official said yesterday.
Others thought Trump wouldn't be content with how regal his visit might be.
His decision not to come was welcomed by critics outraged by the U.S.travel ban on Muslim-majority countries, and more recently, Trump's decision to re-tweet anti-Muslim videos posted by a British far-right organization.
Former UK Independence Party leader Nigel Farage, who has been mainly supportive of Trump's presidency, said he was disappointed by the cancellation.
Khan said: "It appears that President Trump got the message from the many Londoners who love and admire America and Americans but find his policies and actions the polar opposite of our city's values of inclusion, diversity and tolerance".
But Foreign Secretary Boris Johnson suggested that the decision was prompted by opposition to Mr Trump in Britain, and warned that such critics "seem determined to put this crucial relationship at risk". But Foreign Secretary Boris Johnson blamed Khan and Labour Party leader Jeremy Corbyn for discouraging the USA leader from coming.
"We will not allow US-UK relations to be endangered by some puffed-up, pompous popinjay in City Hall", Johnson tweeted.