The plan to bring back 43-year-old singer-actress mid season was abandoned when Carey's team threatened legal action, said the Hollywood reporter.
Lopez had served as a judge on the show for past two seasons while Carey was touted as the new addition to the judge's panel this year.
The producers of "American Idol" are still are negotiating with Lopez to appear on the show's finale in May.
It is reported that the search for the replacement of 43-year-old singer has already begun.
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Producer Fremantle NorthAmerica declined comment.
A representative for Carey denies these allegations.
"I have not been included in any conversation regarding replacing Mariah with Jen this season," said Nigel Lythgoe, Idol producer.