The project, dubbed Volatiles Investigating Polar Exploration Rover or VIPER, will be discontinued following a "comprehensive internal review", NASA said at a press conference.
The space agency said the decision to reconsider the project came amid escalating costs, potential future cost increases, and a launch date delay.
According to NASA, the rover was originally scheduled to launch in late 2023, but the launch had to be postponed to later this year.
After another delay, NASA had last anticipated that the launch would take place in September 2025.
The VIPER robot was poised to roam the moon's south pole, gathering soil samples with a drill. The launch was planned to be carried out in collaboration with the private space company Astrobotic.
NASA said that the rover would now be dismantled and the parts used elsewhere.
"Our path forward will make maximum use of the technology and work that went into VIPER, while preserving critical funds to support our robust lunar portfolio," NASA manager Nicola Fox noted.
-- BERNAMA
