The DC film, which was set to feature Hollywood stars Michael Keaton, Brendan Fraser and JK Simmons, was being filmed entirely in Glasgow.
Production reportedly cost an estimated 70 million dollars (£57.6 million) and the film was scheduled for release in late 2022.
But following test screenings the studio decided to shelve the production completely, and it will no longer appear in theatres or on streaming service HBO Max, according to US publication The New York Post.
It comes after several cast and crew members including Grace and co star Ethan Kai, as well as directors Adil El Arbi and Bilall Fallah were pictured filming in Scotland.
In January, the Trongate area of Glasgow was transformed by set builders into the famous Gotham city with alterations made to shop fronts and police cars.
Batgirl was due to focus on Barbara Gordon, played by Grace, the daughter of Gotham police commissioner Jim Gordon.
DC has been contacted for comment.