Fadhil Abudaka, an official with the Astan (custodianship) of the holy shrine, said the decision has been made due to the recommendations on preventing the spread of the coronavirus.
He added that the ceremony is slated to be held after Maghrid and Isha prayers on the first night of Muharram (September 1).
The religious tradition of changing the flag is held every year on the first night of Muharram.
Shia Muslims around the world mourn the martyrdom of Imam Hussein (AS), the Sayyid-ul-Shuhada (master of martyrs), in Muharram, the first month in the lunar Hijri calendar.
The third Shia Imam (AS) and a small group of his followers and family members were martyred by the tyrant of his time - Yazid Bin Moaweya, in the battle of Karbala on the tenth day of Muharram (known as Ashura) in the year 680 AD.
The coronavirus outbreak that originated in Wuhan, China, has infected over 20 million people around the world and killed over 738,000.
The outbreak has had a major impact on global sporting, cultural, religious and political events, with a host of events canceled or postponed.
With 3,484 new coronavirus cases, Iraq on Monday reported the highest-ever daily COVID-19 infections, according to the Health Ministry.
Meanwhile, the ministry reported 72 additional fatalities from the virus.
Monday’s figures bring the total case count to 153,599 and the number of fatalities to 5,464, along with 109,790 recoveries.