The award, which was given to Myanmar leader Aung San Suu Kyi in 1997, was withdrawn by Oxford because of its inaction in the crisis with the Rohingya Muslims.
The criticism received by the Nobel Prize-winning leader of Myanmar concerns the inaction he shows in the face of the persecution of the Rohingya by the country's army.
The announcement was made by the city council and said, "When Aung San Suu Kyi received the Freedom of the City Award in 1997, it was because she embodied the values of tolerance and internationalism that Oxford represents."
The statement added: "Today we have taken the unprecedented decision to withdraw the maximum price that a city can be awarded due to the oppression of the Rohingya minority."
As early as the end of September, the University of Oxford decided to take down the portrait of Aung San Suu Kyi from the walls, who was also a former student.