The 12-part action adventure saga, featuring Elliot Knight as the titular hero, will not be returning for a second series as its "story has now been told", the broadcaster announced.
"As a broad, family entertainment channel, Sinbad was the perfect drama to showcase Sky1's ambitions for long-running, blockbuster series," Sky said in a statement.
"We were thrilled with the cast and the production team at Impossible, however, we feel that Sinbad's story has now been told."
The company added: "We're in development on a number of exciting new projects and look forward to sharing more news with our customers very soon."
Sinbad premiered on Sky1 in July and counted Lost's Naveen Andrews and Fringe star Orla Brady among its cast.
Dougray Scott, Sophie Okonedo, Timothy Spall and Mathew Horne also made guest appearances.
Sinbad was picked up for US broadcast by Syfy in September.
Watch Digital Spy chat Sinbad with Elliot Knight below: