Western Australia's Public Transport Authority (PTA) has scrapped a deal with Chinese technology giant Huawei.

In 2018, a consortium of Huawei Australia and UGL (HUGL) won a tender to upgrade the radio communications system for Perth's urban rail network, including building about 80 radio masts and base stations, while also replacing radio devices in trains, security vehicles and handheld radios.

But the WA Government says US trade restrictions on China mean they cannot continue the agreement.

Lats year, the United States Justice Department unsealed two indictments against China's Huawei Technologies, accusing Huawei of everything from bank and wire fraud to obstructing justice and conspiring to steal trade secrets from T-Mobile US Inc.

The allegations by the US led to greater scrutiny of the company’s conduct.

WA's Transport Minister Rita Saffioti says the restrictions in the US created unacceptable uncertainty around the total cost of the project and completion time.

“It is extremely unfortunate that the State Government's project — which is limited to a radio network for train drivers and transit guards — has been caught up in the ongoing trade dispute between the US and China,” Ms Saffioti said.

“The PTA will continue its plans to deliver a new digital radio system for our expanding public transport system.”

Ms Saffioti new arrangements to deliver the project without breaching US trade restrictions in being planned.

“In all the circumstances, the PTA has recommended a fresh approach for the Radio Systems Replacement project,” she said.

“We'll continue to work towards the delivery of a high quality radio system at the best possible price for taxpayers.”

The original plan was for the PTA to leave the analogue radio spectrum by May 2020, but that date how now been extended to beyond 2021.