Last year, rapper Drake announced plans to release a record featuring unheard samples from the R&B star, who died in a plane crash in 2001, reported MTV online.
The project drew criticism from fans and was opposed by the tragic singer's family, and Drake pulled out from working on the album.
Now producer Noah '40' Shebib has confirmed the project has been shelved altogether.
"I've been obsessed with Aaliyah forever, and I know Drake has his relationship with her. But that opportunity (tribute album) was mine. Drake said, 'Can I do it with you?' and I was like, 'Of course, we'll do it together'," he said.
"(Aaliyah's) mother saying 'I don't want this out' was enough for me. I walked away very quickly," he added.