Fearing mass protests in London besides consistent threats from the British MP's hell-bent on not providing an opportunity to President Trump to address the Parliament, led to this decision.
"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", Khan said.
Former Mayor of London Boris Johnson has engaged in a battle of words with his predecessor over the visit of Donald Trump to the United Kingdom - calling the Labour politician a "puffed up pompous popinjay". "And you got the message".
Asked if it was a discourtesy to the Queen for Mr Trump to keep putting off the state visit, he replied: "An invitation has been extended and accepted and we will set out details in due course".More news: Walmart to raise minimum wage to $11 an hour
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The old USA embassy, in a historic square in the exclusive Mayfair neighbourhood, was deemed to be vulnerable to terrorist attacks.
Hundreds of replies to the president's tweet took issue with the idea that his predecessor Barack Obama was the person who authorised the change of location. At the time, ambassador Robert Tuttle said the move was for security and environmental reasons, as well as to modernize it for the 21st century.
The diplomatic compound moved from Grosvenor Square in the well-heeled Mayfair neighborhood of central London, to Nine Elms, a formerly industrial area of southwest London that has been part of regeneration efforts by the capital city.
But many commentators believe Trump was instead put off by the prospect of significant protests during his visit with the potential for disruption, negative publicity and embarrassment as the real reason for his continuing avoidance of the UK.
The current ambassador, Robert "Woody" Johnson, said the change was necessary even though the US had been linked to Grosvenor Square for more than 200 years.