The comedian spoke out last year after the dance troupe responded to George Floyd’s death with an emotional performance on Britain’s Got Talent, calling it “indulgent”.
According to Devon Live, he has now said that his shows at the Princess Theatre in Torquay, Devon, have been called off because of what he said.
Watch: Diversity’s Black Lives Matter routine in running for TV moment of the year
Davidson, 67, apparently spoke out on his Ustreme YouTube channel.
“For the first time in 40 years I won’t be playing Torquay’s main theatre,” he said. “They don’t want me. They said it was the last straw.”
Davidson said the theatre took what he said out of context.
The comedian, who will instead play at the Babbacombe Theatre in Torquay, added that he has always "taken the mick out of what is going on".
"People have reacted to a piece of fake news, and it has been the straw that broke the camel’s back," he said.
Diversity’s performance last year saw the dancers tell the story of the death of Floyd, and included a figure in police uniform placing his knee on lead dancer Ashley Banjo’s neck.
So much to say... But I’ll Just let the performance talk. Thousands of messages of Love and support - Thank you 🖤 For the thousands of messages of hate and ignorance - Thank you. You highlight exactly what needs to change. Sending nothing but love to you all 🙏🏽🇬🇧 #Diversity pic.twitter.com/3kP0ymUj88
— Ashley Banjo (@AshleyBanjo) September 6, 2020
The dance – which prompted more than 25,000 complaints to broadcasting watchdog Ofcom – has since been nominated for the 'must-see moment award' at the TV Baftas.
Davison sparked anger in September when he said the routine was “the most indulgent piece of stuff I’ve seen in ages”.
Speaking on his YouTube channel, the comic claimed Diversity didn’t “give a f***” about Floyd but wanted to be famous, saying it was “ridiculous”.
Yahoo has contacted The Ambassador Group, which runs the Princess Theatre, for comment.
Watch: Stars of The Talk open up about their experiences of racism