Plans to redevelop the derelict Casement Park site into a 34,000-capacity venue have been mired in controversy and hit by delays.
Northern Ireland Secretary Hilary Benn and Culture Secretary Lisa Nandy said their decision had been taken because there was a "significant risk that it would not be built in time".
The cost of work on the Northern Irish venue had also "dramatically" increased since 2023, from £180 million to £400 million, they added.
In a letter to communities minister Gordon Lyons, they said there had been a lack of building progress made between now and when the Euro 2028 bid was awarded jointly to the UK and Ireland.
UEFA last October awarded the tournament to the five-nation bid after it was unopposed, with Italy and Turkey agreeing to co-host the 2032 European Championship.
England is set to provide six of the 10 venues; Wembley and the Tottenham Hotspur Stadium in London, Manchester City's Etihad Stadium, Newcastle's St James' Park, Villa Park in Birmingham and Everton's new waterfront stadium in Liverpool.
Belfast, along with Cardiff, Dublin and Glasgow had been due to provide the other four venues.