The source said that West did not want to take the stage in the midst of his divorce battle with Kim Kardashian and in the wake of his one-sided feud with “Daily Show” host Trevor Noah.
In the past several weeks West has taken to social media to air his grievances about co-parenting issues with Kardashian.
Ye did not attend the event but won two Grammys.
The annual event is held over two weekends at the Empire Polo Club in Indio, California, and this year is scheduled to take place April 15-17 and April 22-24.
West had earlier threatened to quit Coachella after Eilish made a comment he perceived to be bashing Travis Scott – something Eilish denied.
While Scott had not been announced as a headliner he will no longer be performing at Coachella with West the source told CNN.