In a letter to Congress on Thursday, Mr Biden wrote that the order was "unwarranted" and said that no further tax dollars will be spent on the wall.
Mr Trump declared a state of emergency over the southern border in 2019, which allowed him to bypass Congress and use military funds for its construction.
When Mr Trump left office, about $25bn (£18bn) had been spent on the project.
The announcement from President Biden is the latest in a series of executive orders that have rolled back key parts of the former president's agenda.