The decision is due to the El Nino weather pattern. Expected to be particularly violent this year, concerns over the impact of El Nino has led the Peruvian government to ensure all state services are ready to deal with the consequences of this weather pattern.
Making this issue a national priority, the Peruvian government will ensure all state services are able to mobilize if necessary to help the population that could be affected, rather than serving in logistical and other roles for the Inca Desafio and Dakar.
The Inca Desafio, a smaller, three-day off-road rally, has been held in Peru for the past two years. This year's event was scheduled for the country's Pisco region on September 11 - 13.
The 2016 Dakar was due to start from Lima, the Peruvian capital, on January 3, with the opening four stages following the Andes before crossing into Bolivia on January 7.
The Dakar organizing team is now working to create an alternative route for the 2016 event: a route that carries the expected Dakar challenges, but one that also ensures optimal safety conditions.
At this stage, both the Argentina and Bolivia sections of the 2016 Dakar are unaffected, with the re-routed event likely to now start and finish in Argentina, taking in more of a circuitous route.
The final route for next year's Dakar to be announced in the second half of September.