"It appears that [he] does not want to be associated with a program that could serve as an inspiration to others," said a written Fox statement. "We are cutting his interview from the special and wish him the best with his fledgling acting career."
"Real American Stories" is not the only program that Palin has developed.
She also has sold a program called "Sarah Palin's Alaska" to the Discovery Channel.
The eight-part series is about Palin and "the majesty" of her home state of Alaska. The series is being executive produced by Emmy-award winner Mark Burnett of "Survivor" and "Apprentice" fame.
When it comes to Palin's political future, no one knows for sure what she will do.
Her biggest hurdle remains that seven in 10 Americans see her as unqualified for the job of president of the United States, according to poll numbers.
Palin did not do herself any favors with her skeptics by quitting her job as governor part-way through her term.
On the other hand, Palin continues to be the biggest draw in Republican politics.
There is no other Republican on the American political stage capable of drawing Palin-type crowds and media attention.
Furthermore, Palin's new series, "Real American Stories," could have the effect of complementing - and softening the hard edges - on her anti-big government message.
Who needs direct government lending, after all, if a wealthy Wall Street financier is going to show up in your inner city neighborhood offering to put you through college if you finish high school?
When asked recently on "Fox News Sunday" if she would run for president, Palin said it would be "absurd" not to consider how she can help her country.
In trademark fashion, she then coyly added that she doesn't know if the contribution that she will make will ever be by "seeking a title."
"It may be just doing a darn good job as a reporter or covering some of the current events," said Palin.
ABC News' Julie Perchia and Matt Loffman contributed to this report.