Michael D Higgins was due to be guest of honour at the commemorative event in Belfast City Hall on April 8.
It is understood the fact the occasion has not garnered enough cross-party support, with a number of unionists declining invitations, motivated the president’s decision to stay away.
Sinn Fein Lord Mayor Arder Carson received a letter from the president outlining his reasons for pulling out.
Mr Carson said: “Both personally, and on behalf of Belfast City Council, I am extremely disappointed that the President is no longer attending this event, part of our Decade of Centenaries programme.
“The overall programme for the decade was agreed by full council and has cross-party support; and that position has not changed.
“A lot of hard work has gone into creating an inclusive programme of events which is respectful of all viewpoints and which focuses on the key events of our shared history, and those which have impacted on our city.
“In this important year which reflects on the centenary of the 1916 Easter Rising and the Battle of the Somme, Belfast City Council has shown leadership in how we mark these events and I would wish that to continue.
“The dinner will, of course, be going ahead on April 8 and I am very much looking forward to the occasion.”
A spokesman for Aras an Uachtarain confirmed President Higgins would not be attending.
“The President accepted the invitation to the civic dinner on the basis that there was cross-party support for the invitation,” he said.
“This now is no longer the case, leaving the President with no other option but to withdraw as he does not want to become embroiled in matters of political controversy.”