Parton did not specify why she and her Dollywood Co. were pulling out of the venture with Gaylord Entertainment Co. but suggested she and Gaylord were not seeing eye-to-eye.
"Gaylord makes decisions that they feel are good for their company and their stockholders and I have to make decisions based on what is best for me and the Dollywood Company," Parton said Friday.
Gaylord said it would forge ahead with plans for the 114-acre park, which would be adjacent to the Gaylord Opryland Resort and Convention Center.
"We have enormous admiration for Dolly Parton and her company, and respect their decision," said Gaylord Chief Executive Officer and Chairman Colin Reed. "We will endeavor to find another quality partner so that this important tourism project can become a reality."
CNN said the plan had called for Dollywood to be the operating partner of the proposed park in a 50-50 split with Gaylord.
2014: The Year in Music [PHOTOS]