The singer and producers at first reached a compromise, agreeing that 7 Rings would be part of a medley that Grande was to perform.
Grande is still, however, a dual nominee with nods for Best Pop Vocal Performance for the sultry banger "God Is a Woman" and Best Pop Vocal Album for "Sweetener", which she dropped in the summer of 2018.
But there was yet another disagreement when the producers insisted that they would be able to choose the second song of the medley.
Metro.co.uk has contacted reps for Ariana for comment.
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.
Scheduled performers during the Grammys include Lady Gaga, Miley Cyrus, the Red Hot Chili Peppers, Brandi Carlile, H.E.R., Dan + Shay, Camila Cabello, Cardi B, Post Malone, Shawn Mendes and Janelle Monáe.
Meanwhile, Taylor, who is also nominated in the Best Pop Vocal Album category, is also thought to be giving the Grammys a miss.
The other Album of the Year contenders - who were all male - were instead offered solo spots performing songs from their nominated LPs.
The Grammy Awards will air live from the Staples Center in Los Angeles on Sunday, Feb. 10 at 8 p.m. ET on CBS.