The so-called "Queen of Soul" told festival officials she would be unable to headline the 10th rendition of the June 13-15 festival as initially planned, The Indianapolis Star reported Saturday.
"I received a call from (Franklin's) management saying that they regret she will be unable to appear," festival manager Joel Harrison said.
Harrison said he was able to book singer John Legend to replace Franklin and was thrilled with his final lineup.
"I was looking at an array of artists, but I've wanted to get John Legend here for a couple of years," he said. "While we're sorry that Aretha won't be here, somehow things have a way of working out. I couldn't be happier."
The Star said in addition to the 29-year-old singer, the festival at the White River State Park's Military Park will feature performances from musicians Buddy Guy, Dave Koz, Ramsey Lewis and the jazz group Fourplay.