City had travelled to Houston after a 1-0 friendly win over Toronto FC on Wednesday, when torrential rain had already swamped portions of Texas and Oklahoma.
Despite the efforts of the Dynamo grounds crew, a pitch inspection on Thursday raised concerns, and match officials ultimately deemed it unsafe.
Premier League runners-up Manchester City were to travel to new York to watch their MLS sister club New York City FC take on Houston at Yankee Stadium in an MLS match on Saturday.
City manager Manuel Pellegrini said in a statement the team were “bitterly disappointed” for fans.
“We thank the entire Houston Dynamo team for their efforts in preparing for the match and regret that the game could not be played.”