The British superstar, 28, secretly shot the video — which included explosions, crowds fighting and chaos — prior to Hamas’ invasion of Israel on October 7.
It included hundreds of extras and was her biggest budget music video ever in the run-up to the release of her third studio album next year.
However, she has scrapped the video after emergency meetings when it was decided it could provoke a backlash.
A music insider said: “A video was shot for Dua Lipa’s forthcoming campaign last September.
“At its heart the video was playful but contained themes of chaos — including car crashes, demolition, explosions, fireworks and crowds fighting.
“Dua and her team decided that it would be insensitive for the video to come out given what has happened on and since October 7.”
Terrorist group Hamas launched an attack on Israel on that day, killing around 1,200 people and it has resulted in the violent conflict in Gaza.
In a statement on Instagram in October, Dua wrote: “With each passing day, my heart aches for the people of Israel and Palestine.
“Grief for the lives lost in the horrifying attacks in Israel.
“Grief as I witness the unprecedented suffering in Gaza, where 2.2 million souls, half of them children, endure unimaginable hardships.
“For now, I desperately hope for a ceasefire in Gaza and urge governments to halt the unfolding crisis.
“Our hope lies in finding the empathy to recognise this dire humanitarian situation.”
The as-yet unannounced track will feature on the third studio album.
The record’s first single Houdini reached No2 in the charts when it was released last month.
Earlier this week it was revealed Dua is now Britain’s highest-earning female singer with her business banking more than Adele, 35, in 2022.
Sources close to Dua insist the video was conceptualised and shot prior to the start of the war and that she made the decision to cancel the planned release.
Dua has spent the festive period holidaying in India. She is expected to headline at Glastonbury next year.