The 21-time Isle of Man TT winner pulled out of the event in County Antrim after citing “unfair and unequal” treatment.
Dunlop has won the feature ‘Race of Legends’ race at the event a record nine times.
In a statement on Friday morning, the 33-year-old said: “All of the MD Racing machines were prepped and ready to take part in Armoy road races this weekend when the team was informed that it was not being treated on an equal and fair basis with some of the other teams taking part in the event.
“As a result, we have decided to withdraw from the meeting. This decision has been taken reluctantly after so many years of enjoyable and successful racing at Armoy, my home race, we can’t explain our level of disappointment with the situation with the club after 10 plus years of commitment to the event.”
Dunlop did not elaborate on the reasons behind his decision, which will leave his many fans at Armoy bitterly disappointed.
Practice and the opening races at Armoy will be held today, with the main race programme taking place tomorrow.
More to follow.