The middleweight champion had been negotiating a bout against Sergiy Derevyanchenko, but talks fell through after reportedly being "far apart on the money."
Although the IBF had allowed for multiple postponements for him to agree to one of his mandatory defenses, the deadline passed Monday, and it resulted in the fighter losing his belt.
IBF President Daryl Peoples sent a letter explaining the decision, via Rafael:
"It is crystal clear from the correspondence that on July 26, 2019, [Golden Boy matchmaker] Robert Diaz, on behalf of Golden Boy Promotions, agreed that Saul 'Canelo' Alvarez would relinquish the IBF middleweight championship title, with no further negotiations or purse bid, if there was no completed deal between him and Derevyanchenko by the agreed upon extended deadline of Monday July 29, 2019 at 3 p.m. ET. As of today, August 1, 2019, the IBF has been advised that there is no such deal."
Alvarez most recently fought May 4, defeating Daniel Jacobs by unanimous decision. He improved to 52-1-2 in his career with the victory, also defending his IBF, WBC and WBA middleweight championships.
He was reclassified as a WBC franchise champion in June.
However, the 29-year-old decided to postpone his usual fight date of September during Mexican Independence Day due to the inability to agree to a new fight.
"As a Mexican, it’s a responsibility and an honor to represent my country in both May and September," he said earlier this month, per Manouk Akopyan of the Los Angeles Times. "Those are my dates. However, as a world champion in multiple weight classes, I also have the responsibility of delivering the most exciting and competitive fights possible."
There were discussions about a possible third fight against Gennady Golovkin, but that hasn't come to fruition either.
Although DAZN had approved Derevyanchenko as an opponent for a future bout, an agreement could not be made before the IBF deadline.