Indiana vice president and director of intercollegiate athletics Fred Glass said the two schools began talks on Sunday and decided to cancel the game late Monday evening.
Many of the FIU players and coaches are from the south Florida area impacted by Irma, which has caused destruction and flooding throughout the state. As a result, FIU has canceled classes, and the schools cited logistical hurdles that were too great to overcome to play the game.
It's still unknown when FIU will be able to leave Birmingham, Alabama, where its teams have been for nearly a week to get away from Irma. Irma actually found the Panthers there; tropical storm conditions from the remnants of Irma were hammering Birmingham on Monday night.
Indiana is now working to schedule a new opponent to play at Memorial Stadium on Oct. 7, which would have been the team's bye week.
The Associated Press contributed to this report.