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Published 08:10 14 Aug 2019 BST
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"She's in a different place right now after leaving Corrie and is working hard to land some new roles.
"She was really excited about the wedding and had even picked a venue but deep down she knew it wasn't right. They are both really sad about it but have vowed to remain friends."
The pair announced their engagement earlier this year after getting back together following a brief breakup.
Gates presented Brookes with a ring followed by an emotive tune on the piano after asking her to marry him. They had been holidaying in New York at the time.
“To have such a beautiful ring and to share the most brilliant life with my best friend is everything I’ve ever wanted," Brookes said.
"He could have but any ring on my finger and I would have said yes.”
The former Coronation Street actor, who left her role as Kate Connor the soap earlier this year, had said previously that she and Gates were planning to move to London together.
She is currently at home in the UK while Gates is on holiday in Spain.
The pair met back in 2012 when they were starring in the UK tour of Legally Blonde The Musical.
They split for the first time in September 2018, announcing that they were "taking some time apart" but that they still remained "best friends."
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