The singer will perform her nominated song 'Udhero Na' featuring Anoushka Shankar at the February 5 Grammys premiere ceremony.
During a press conference, he said Ali wanted to sing but looking at his own position, he could not "be a part of a controversy".
Tariq was scheduled to perform on the third day of the food festival alongside Kaifi Khalil, Taha G and the Young Stunners.
The singer suffered cardiac arrest in her home in the Los Angeles suburb of Calabasas and was taken to a hospital before she passed away.
The influential guitarist rose to rock and roll stardom with 1960s super-group Yardbirds and later enjoyed a prolific solo career.
He will take over the musical festival's stage on April 16 and 23.
Wireless is considered Europe's biggest celebration of pop culture and is coming to the Middle East for the first time this March.
"I don't need fame of that sort," he said in response to people claiming he made the accusations for "cheap fame".
Lata Mangeshkar, Elton John, Bob Marley, Usher, Stevie Nicks, Taylor Swift, Bono, Michael Jackson and BTS’ Jungkook were also on the list.