The 25-year-old singer was offered the accolade after she visited the victims of last year's Manchester bombing and for subsequently arranging a charity concert in the city - but Grande has declined the offer in a show of respect for the grieving families.
A source told the Sun on Sunday newspaper: "Ariana was flattered but said it was too soon. She explained she was still grieving. So were scores of families.
"She feared some affected might see it as insensitive. The committee wrote to her but she politely said no."
In a subsequent interview, Grande admitted that the incident in Manchester had changed her approach to life, revealing she now feels scared to visit some places.
The chart-topping star - who is one of the world's best-selling pop acts - explained: "You want to not be afraid, because of course that's what [the terrorists] want. If you give them that, then they've won."
"But the truth is, it's scary. It's scary going anywhere. You look at places differently."
