The Lifetime network confirmed Coleman's departure from the project by posting on Twitter on Sunday, announcing, "Production is currently on hold."
Coleman, 17, told reporters at the BET Awards in Los Angeles on Sunday that she felt uneasy about the production.
"I felt like something with the production [wasn't] all the way there, the project wasn't all the way there," she said. "If I'm going to do something for someone I care about so much, I have to do it the right way."
"I just felt that because I love her, and because I respected her so much as an artist, I don't want to do anything that's half or anything that's less for her," Coleman said.
After the biopic was announced, Aaliyah's family was reportedly against it.
Coleman says she is still open to playing Aaliyah in the future.
"By all means, when the right project comes along, and it's done the right way, I'll be the first person ready to play Aaliyah. But, this wasn't the right one for me," she told MTV News.
The film was originally set to premiere this fall.
Reporting by CHRISTINA DUGAN