FA chairman David Bernstein said the FA had consulted with the police, Government and Brent Council.
He said in a statement: "We were unable to host the fixture or guarantee the safety of the fans."
Carling Cup matches at Charlton, West Ham, Crystal Palace and Bristol City were postponed.
And Ghana's friendly with Nigeria at Watford's Vicarage Road was also called off.
David Bond assesses the impact on the sporting schedule
BBC Sport understands the Premier League has had talks with the police over this weekend's matches involving London clubs but believe it is too early for a decision to be taken.
However, Edgbaston officials say the third Test between England and India starting in Birmingham on Wednesday will go ahead as planned.
The FA has said that all general admission tickets will be refunded in full and that it hopes to rearrange the game against the Dutch sometime next year.
Bernstein added: "We have received clear advice that due to the sporadic and widespread nature of the unrest there are significant concerns in relation to the available emergency service resource to safely police the fixture.
"For these reasons the game cannot go ahead.
"The FA wishes to make clear it is in complete agreement with the advice of the Metropolitan Police, the Government and Brent Council.
Dan RoanBBC sports news correspondent
The presence of the entire England squad at today's press conference was unprecedented. But many will feel players like Peckham-born Rio Ferdinand should have expressed an appeal for calm on the streets of London themselves, rather than having thoughts read out on their behalf by an FA official.
"The Dutch FA (KNVB) were informed of the decision prior to their scheduled departure from Holland, and we thank them for their co-operation and support."
The England team trained as normal at London Colney on Tuesday morning, before returning to their respective clubs.
The FA's managing director of Club England Adrian Bevington said: "On behalf of the squad we would like to say that we are disappointed but we understand and support the decision.
"At this time the whole squad would like to appeal for calm and an end to the disorder which has been ongoing."
Bert van Oostveen, chief executive of the Dutch federation the KNVB, explained: "The police in London could not guarantee the safety of our players and our supporters."
England general manager Franco Baldini told BBC Sport: "We are a bit disappointed - but mainly because of what has happened to London. All the rest is not that important. The next time we'll get together will be before the Bulgaria game on 29 August."
England players appeal for end to riots
Defender Rio Ferdinand said
"England vs Holland game is off, good call. Who wants to see a game of football when our country is in turmoil?"
Meanwhile BBC sports news reporter Joe Wilson, in Birmingham for the third Test, said on Tuesday that nearby hotels had been advised to lock their doors.
He wrote on Twitter:
"Helicopters circling over Bull Ring, about half mile from England hotel. Spoke to England head of security, confident all players safe."
And Tottenham's Premier League fixture against Everton on Saturday could also be in doubt, although a statement on the club's website on Monday said that everything was being done to ensure the match went ahead, with fans urged to
check the official website
In London, violence broke out on Monday for a third consecutive day with riot police deployed and firefighters tackling blazes across the capital, following disturbances in Tottenham on Saturday evening and Enfield on Sunday night.
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