The rapper, who was due to put the track on iTunes this week, was forced to delay the release after its producer Munchi claimed she didn't have permission to release the song.
Munchi also revealed that he was offered $25,000 and then $50,000 and an apology in exchange for use of the number, which originally featured on her mixtape 'Fantasea'.
He said: "No releasing my track, being a spoiled brat, releasing coverwork, release dates before even reaching out is a good look right?
"Tell your camp the deal is off I don't want your f**king $25.000. F**k off. Go be a puppet bitch to someone else."
Banks replied with the message: "K so Esta Noche won't be being released today because @originalmunchi thinks I'm in the illuminati… I'm being very serious right now. I'm cracking up right now… This is a first.
"I'm still shooting the esta noche video tomorrow . *kanye shrug*."
Munchi later took to Facebook to say he had been "disrespected" by Banks and her label, adding: "thought it was ok to just give me a sum of money for my integrity. Each time they told me something and put out something that was not discussed.
"In the end trying to blame me for something she put up in error by stating that this release could not be out today since I think she is in the Illuminati (thirsty for fame and success by portraying occult references in every step you take is not something I want to affiliate with.
"Even less because it is a hype nowadays, it's f**king music yo)."
Azealia Banks kicks off her sold-out UK tour in Manchester tomorrow (September 28), before heading to London's Shepherd's Bush Empire on October 12.
Her debut album Broke With Expensive Taste is due for release in February next year.
Listen to 'Esta Noche' below: