However, the event was nixed once details about the show, which was supposed to remain under wraps, leaked to the public.
A spokesperson for New York's Mayor's Office of Film, Theatre and Broadcasting released a statement saying that the decision to pull the plug on the event stemmed from news of the secret show being leaked.
"There was discussion of a concert, and ultimately it was decided there would be no permit," said Julianne Cho, associate commissioner, Mayor's Office of Film, Theatre and Broadcasting in a statement e-mailed to MTV News. "Many permits are granted on the condition that the event is not made public beforehand for capacity and security reasons," the statement continued. "This event was made public."
At press time, reps for Jay-Z had not responded to MTV News' request for comment, and the status of his "Letterman" appearance was unclear.
The decision to cancel Hov's concert also comes days after fans swarmed downtown New York's South Street Seaport to catch a free show from hip-hop sensation Drake.
The New York Post reported on Friday (June 18) that the event organizers had to fork over $100,000 beforehand to cover the expected overtime costs for New York City workers and police dispatched to handle the show.
Outdoor performances are nothing new for Letterman: Last year Paul McCartney took to the Ed Sullivan Theater's legendary marquee for his appearance on the show.