Grande, who was named Billboard's woman of the year last year, is up for two Grammys including "Best Pop Vocal Performance" for last year's "God Is A Woman" and Best Pop Vocal Album for "Sweetener" which was released last summer.
But there was yet another disagreement when the producers insisted that they would be able to choose the second song of the medley. Reps for the Grammys did not immediately respond to Variety's requests for comment.
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However, if Variety's report is true, they also claim that the conditions they imposed on Ariana were not imposed on the other performers as well.
The 26-year-old singer has chose to pull out of the awards show after she had a disagreement with the producers, a source tells Variety. Instead, producers reportedly offered the New Zealand singer a spot in a Tom Petty tribute, which she declined. Incidentally, Ariana was none too impressed, so she recanted on her side of the agreement, and pulled out of the gala immediate effect.
A Grande no-show isn't exactly good business for the Grammys as she's now the reigning queen of the Billboard charts with the number one song in the country, "7 Rings" with "thank u, next" trailing not too far behind.
Meanwhile, Taylor, who is also nominated in the Best Pop Vocal Album category, is also thought to be giving the Grammys a miss.