The turf of the Ambedkar Stadium is being relaid by British company Hemstock Associates and football officials feel that Independence Day celebrations will spoil the turf.
Six international teams, including last year's champions India are participating in the event.
Syria is the highest ranked team, followed by Thailand, India, Lebanon, Kyrgyzstan and Sri Lanka. The teams will be arriving from Aug 16.
The Chhatrasal Stadium used to be the first-choice venue for the Independence Day events but is undergoing renovation for the Commonwealth Games 2008, and so the choice has fallen on the Ambedkar Stadium, officials said.