The United World Wrestling, the world's governing body, has not yet announced the new schedule but sources expect the event to be rescheduled to March.
The WFI president Brij Bhushan Sharan Singh had expressed reservations about NGOs offering contracts to wrestlers without keeping the federation in a loop.
Till recently, WFI had let the quota winners keep their place for the Olympics but it feels the latest move will keep top wrestlers "on their toes".
While the federation had recommended 45 names including 30 wrestlers, SAI had approved only seven of them and asked the WFI to recommend 17 more names who will be sent on government cost.
Despite SAI's clearance of wrestlers for U-23 Worlds, Wrestling Federation of India chief not amused
The Sports Authority of India said that it will bear the cost of only 24, while the other six would be on no-cost-to-the-government.
Sanction full list or team will not compete in U-23 World Championships: Wrestling Federation to SAI
The existing stalemate could even lead to India's non-participation in the event scheduled in Belgrade, Serbia from November 1 to 7.
The SAI selected seven wrestlers, whose cost will be borne by the government and asked the federation to nominate 17 more to ensure they also get the same benefits leaving out six from the list
The Wrestling Federation of India (WFI) though sought permission from the Sports Authority of India (SAI) to organise a preparatory camp but the request has not been approved as of now.
Pankaj, an Indian Air Force wrestler, hails from Sonepat's Bhainswal Kalan village, the native place of London Olympics bronze medallist Yogeshwar Dutt.
The Wrestling Federation of India (WFI) has claimed that sports NGOs like OGQ and JSW are spoiling their athletes and will not allow them to interfere in the affairs of elite wrestlers.
Bajrang returned with a bronze medal from Tokyo after going all out in the third-fourth place play-off against Kazakhstan's Daulet Niyazbekov, taking the mat for that bout without taping his knee.
The announcement was made during a programme organised to extend WFI's partnership with Tata Motors as the game's official sponsors till the 2024 Olympics.
Young and talented Indian wrestlers would gain assured and enhanced access to world-class training facilities, internationally reputed coaches and support through a rich nutritional programme.
The WFI will not force Tokyo Olympic silver medallist Ravi Dahiya to participate in the upcoming World Championships.
"Yes, all three wrestlers were let off with a warning that they will be banned for life if they commit such indiscipline in the future," a WFI source confirmed to this daily.