Melbourne's top civic space has long been a focal point for major sporting events, drawing thousands for live screenings during the FIFA World Cup.
But organisers have opted against hosting broadcasts in 2026, citing previous inappropriate fan behaviour.
"This is not just a local logistical decision; it is a direct blow to Australian fan culture," a petition online, which has already attracted hundreds of signatures, says.
"Federation Square has long served as the civic gathering place for major sporting milestones."
Melbourne Arts Precinct director and chief executive Katrina Sedgwick confirmed late on Wednesday that Fed Square would not hold public screenings due to poor behaviour by attendees in past years.
"After careful consideration, we've made the decision not to show the World Cup on Fed Square's Big Screen this year," she said.
The move has frustrated fans, players and organisers of the sport alike, with former Socceroos captain Craig Foster labelling the move "absurd".
"It's one of our most important national moments around the country. It's those moments, we remember for the rest of our lives," he told ABC Radio Melbourne on Thursday.
"We need to find a way to make it work."
Matildas captain Sam Kerr also took to social media on Wednesday, sharing a Instagram post announcing the decision along with the caption: "Booooooooooo".
Football Australia joined the calls, saying it had expressed its disappointment with the state government and Melbourne Arts Precinct.
"Federation Square has created some of the most memorable moments in Australian sporting history," chief executive Martin Kugeler said.
"This decision is disappointing."
Federation Square has hosted thousands of fans to watch the Aussie side's fixtures since the 2006 World Cup in Germany.
Video of feverish celebrations at the venue were shared widely when Australia advanced to the round of 16 during the 2022 Qatar tournament.
Several incidents marred the screening, however, including revellers setting off projectiles.
Ms Sedgewick said the layout of the square means it was difficult to control fan behaviour, citing the lighting of more than 100 flares at a single event.
The Socceroos will make their seventh appearance at the men's World Cup finals and have drawn Turkey, the United States and Paraguay in the group stage of the tournament to be jointly hosted by Canada, Mexico and the US from June 11 to July 19.
Opposition sport spokesman Brad Battin described the decision as "un-Australian".
The state government has been contacted for comment.