Speaking via Twitter on Sunday (April 14), the singer said: "I'm not a part of the London O2 concert on 22nd April 2012 guys. Just letting u all know. Another time. Love u all and thanks for the support."
After much media speculation, it has now been confirmed that Nigam is expected to perform at the O2 as planned.
The 38-year-old tweeted "London O2 happening.. Get ready guys."
The Dhamaka team issued a statement to Digital Spy confirming the news, saying: "There was a misunderstanding on Twitter that is now cleared up. Dhamaka is most definitely on, on 22nd April and is shaping up beautifully!"
Naz Choudhury, producer and artistic director of Dhamaka, said that Nigam is "excited" to perform at the O2 arena .
"I am really happy that he is excited to perform at Dhamaka O2, as I've always believed that he totally deserves the prestige," Choudhary said.
"Atif Aslam is really pumped to be the first Pakistani singer to play the O2 stage. He has been working on a few new sets and is well on his way with his new album material, so we are expecting some surprises."
Dance troupe Bolly Flex, who found fame on Sky1's Got to Dance, will also be performing at the concert.
"Bolly Flex… have been training unbelievably," said Choudhury. "The UK will be in for a surprise, because these guys have phenomenal levels of energy on stage.
"Also on this note there could be a surprise element, as we have some interest from a particularly big Bollywood star, who is well known for great dancing abilities."
Dhamaka comes to London for one night only on Sunday, April 22 at the O2.
> Read Digital Spy's interview with Sonu Nigam