Saudi Arabia reported its first case of the new coronavirus on Monday from an individual who had not disclosed his visit to Iran when entering Saudi Arabia.
"Based on the recommendations of the committee appointed to monitor coronavirus...it has been decided to suspend umrah for citizens and residents in the kingdom," SPA said, citing an official source in the Saudi interior ministry.
The decision will be reviewed regularly and reversed when the situation changes, SPA added.
Saudis and residents can still visit Mecca and Medina and pray there, provided they do not go for the purpose of umrah, deputy haj minister Abdulfattah Mashat told Al Arabiya TV on Wednesday.
"Mecca is still open to visitors from across the kingdom, the decision suspends only umrah activities," he said.
It also barred tourists from at least 25 countries where the virus has been found, and on Tuesday it limited arrivals of travellers from the Gulf Cooperation Council (GCC) countries.
Pilgrimage is big business for Saudi Arabia and is the backbone of plans to develop tourism under Crown Prince Mohammed bin Salman's economic reform agenda.
Visits by pilgrims accelerate during the holy fasting month of Ramadan, beginning this year in late April.