Five sports - badminton, weightlifting, wheelchair rugby, archery and fencing - have lost their funding over the next cycle as UK Sport divided £345m of National Lottery and government funding to sports it believes are best placed to win medals in Japan in four years.
"We would like to invest in every sport but the reality is that we have to prioritise within agreed resources to protect and enhance the medal potential within the system," said UK Sport chief executive Liz Nicholl.
"If we under-invest across the board then the British teams will ultimately under-perform at the Games and medal success will be put at risk."
The strategic medal focused approach adopted by UK Sport over the past 20 years has led to Great Britain's third and second best ever medal hauls at the London 2012 and Rio 2016 Olympic Games, becoming the first host nation in history to better its results at the next Games in the process.
UK Sport is now targeting 51-85 Olympic medals and 115-162 Paralympic medals in Tokyo.
"The four year journey to Tokyo 2020 starts now and the government and National Lottery is backing UK sport to help maintain our place as a sporting superpower," said sports minister Tracey Crouch.
"UK Sport's approach to elite sport has proven successful in Beijing, London and Rip and the ambition to win more medals in Tokyo is a bold one that, if achieved, would mean a sensational summer of sport in 2020."