The former Love Island star, who is the brother of heavyweight world champion Tyson Fury, was due to take on YouTuber turned boxer Paul at the Amalie Arena in Tampa, Florida, later this month and now Paul is set for a rematch with Tyron Woodley, whom he beat via split decision over eight rounds in August.
The fight had received huge hype from both camps in the build-up, with a press conference last week in which Fury gave no indication he was carrying an injury.
Paul took to Instagram on Monday to confirm the news.
"It is official, Tommy Fury is boxing's biggest b****," Paul said in video. "He has pulled out of the fight, the Furys have pulled out of the fight due to a ‘medical condition’, who knows what the f*** is going on in that camp?!"
Fury later confirmed the nature of the medical condition and his intention to reschedule the fight.
"I am absolutely heartbroken that I have been forced to withdraw from my fight with Jake Paul due to a bacterial chest infection and broken rib,” he said.
"The beginning of my camp was going so incredibly and I never expected anything to come in my way from a victory on December 18.
"I can't express how disappointed I am and I really do hope we can get this fight rescheduled in the new year. I want this fight to happen more than anything. I'm now regretfully putting my focus on recovery and a further reschedule date."
Fury was set to pocket a significant sum for the fight with Paul mocking his missed opportunity.
"I couldn't believe the news at first, it still doesn't even seem real," he continued. "He fumbled the biggest bag of his life and now he will be watching at home, paying me $60 instead of getting paid millions of dollars to fight me.
"I fought with a broken nose, I fought sick, get the f*** over it, this is boxing."
Paul will now instead face former MMA star Woodley in a rematch.
"It's official, he was scared," he added. "I think the pressure got to him, the s*** talk got to him, that's the bad news guys.
"The good news is that Mr Tyron Woodley, we called him up and we were like 'do you want to take the fight?' And he said he'd take the fight and do the rematch.
"I'm giving him $500,000 extra if he can knock me out."
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