It's after a disagreement with show producers who wouldn't allow her perform 7 Rings.
Grande has been uncharacteristically quiet about this reported development on social media, so it's at least possible that the decision is not final and something can be worked out.
With Grande pulling out of both performing and attending the awards ceremony, it could lead to a big dip in the ratings, giving how popular she is at the moment.
Supposedly, producers refused to let her perform her latest hit, "7 Rings", which didn't bode well with Ariana, sources told the outlet. Ultimately, the insider said producers backed down saying she could perform it as part of a medley, but they insisted the other part of the medley be their choice.More news: Australia hit by ‘once in a century’ floods
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The Thank U, Next song reached 100 million plays in just 11 days, setting yet another record for the Spotify streaming service. Instead, producers reportedly offered the New Zealand singer a spot in a Tom Petty tribute, which she declined.
The pop star has been nominated for two awards at the Grammys.
During an interview with Billboard past year, Ariana made it very clear that she is not a pushover in the industry. The song is the second track from her new album "thank u, next" expected to be released February 8 before the awards show.