Anyone arriving in Britain from France must self-quarantine at home or other accommodation for five to 10 days, according to British government rules.
“Both clubs have explored all avenues to play, but recent UK government changes to quarantine rules for travelers returning from France have made the required restrictions too difficult to overcome,” City said.
The promoted Troyes of Ligue 1 is part of the same city owned by Abu Dhabi Football Group, which includes Major League Soccer on the side of the city of New York and the Spanish Girona.
The City first team will now continue their preseason preparations in Manchester, with no plans to replace the friendly.
They play second division Preston North End behind closed doors in a friendly on July 27 before the Community Shield at Wembley Stadium in London against FA Cup winners Leicester City on August 7.