Organisers are hopeful the tournament can now be rescheduled for the ACT's next block of school holidays during the second half of September, rather than being cancelled for a second year in a row.

The tournament was put in jeopardy last week when Sydney entered a two-week lockdown. More than half of the teams who were set to play in the Kanga Cup were from Sydney, while interstate sides were also going to be unable to play.

"It's a balance of what to do, for what's right for our community and what's happening around the country with COVID, so making sure that Canberrans are safe and also our participants," Capital Football chair Fran Sankey said.

"Last year was disappointing when it didn't happen at all. This would've been our 30th year - it's got longevity because people love to come to Canberra and participate in the tournament."

Capital Football has been working feverishly since parts of the country were plunged into a COVID-enforced lockdown to develop a contingency plan for Australia's largest annual junior tournament.

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Teams unable to attend the proposed postponed event will be entitled to a full refund, as per Capital Football's policy for COVID-related withdrawals or cancellations.

A Capital Football statement on Tuesday read: "The effect of teams unable to travel from COVID-affected areas. . .would see many divisions become untenable due to a lack of teams.

"Those divisions that were possible to proceed would be largely unbalanced with elite teams competing against community teams.

"With growing case numbers across COVID-affected areas, Capital Football needs to continue to protect the Canberra community.

"Bringing a mass-participation tournament to the ACT during this time would not be exercising our social responsibility. Capital Football believes that this is the correct decision to safeguard our community."