According to Hits, the Florida native had a conflict with producers over which songs she would perform, with a source telling Variety that Grande initially wanted to take the stage with "7 Rings", the latest single from her upcoming album Thank U, Next, which arrives on February 8.
A medley involving "7 Rings" seemed to be agreed upon until producers wanted to choose the second song, according to Variety.
It's after a disagreement with show producers who wouldn't allow her perform 7 Rings.
The insider claims that producers suggested a medley performance instead, which Ariana is reported to have been on board with. Both sides were thereby at an impasse in negotiations, to which the Grammy's counteroffered Lorde a spot in the Tom Petty tribute performance.
Grande has already released two singles from her upcoming album Thank U, Next, the title track and 7 Rings, which has already shattered records.
However, she has since refused to perform (or even attend the ceremony) according to reports, after she disagreed with producers.
"Sweetener" and the songs "Thank U, Next" and "7 Rings" all smashed Spotify records, with "7 Rings" breaking the streaming service's record for most plays within a 24-hour period with almost 15 million.
At this time, however, the Recording Academy and Ariana are yet to confirm the news, so there is still a chance it's just a fake rumor and that fans will be able to see the singer at the awards show on Sunday after all!