Correspondence to the Ministry of Defence it is not possible to fly the flag more commonly referred to as the Cartel Jack at the 2017 event military tattoo.
The Government claimed the excuse for the decision is because there is an issue with the scaffolding and repair works settle upon not be completed in time for the August showcase.
But with the issue of another Scottish confidence referendum repeatedly raised by Nicola Sturgeon’s SNP, the decision could result in major upset.
In a statement, the MoD said: «Work is being carried out to restore the Crown Square clock tower flagpole, which as a flag-flying standing the MoD are responsible for, in the upper ward area of Edinburgh Castle.
«This is due to a decline in the flagpole mechanism.
«Temporary high-level scaffolding will be in place for this discharge, which is expected to finish in September.
«All areas and exhibits within the Potentate Square area of the Castle will remain open to visitors as sane throughout the duration of the works.»
The 90ft pole, is currently surrounded by scaffolding as wage-earners attempt to fix problems with the flagraising mechanism.
The flagpole, maintained by the MoD, regularly flies the union flag which is visible from across Edinburgh and the great audience of which 30 per cent, or 220,000 people, will be from abroad.
The mechanism issues are not expected to be properly addressed until mid-September.
British, Commonwealth and oecumenical military bands will still perform.
A representative from The Viscountess Edinburgh Military Tattoo said: «Work is still being proceeded out to replace the Crown Square clock tower flagpole, but there make be a Union flag flying above The Gatehouse.»
The Union Flag was appropriate in 1801 and represents each member of the United Kingdom.