The singer had been advertised to be singing at DreamWorks Animation's Jeffrey Katzenberg's May 10 party for Obama, which is expected to raise $2m (£1.3m) for the US president's election campaign.
A source close to the singer has now told The Wrap that Streisand will support Obama's re-election campaign, but likely won't perform at Katzenberg's gala.
Streisand previously campaigned for Obama prior to the 2008 election by singing at a Beverly Hills event which boasted an all-star guest list.
The 'Happy Days Are Here Again' star has been an active supporter of the Democratic Party since the 1960s and is a close friend of former US President Bill Clinton.
Streisand's most recent studio album What Matters Most reached the top five on the US album chart last August.
> Barbra Streisand clarifies Glee comments
Watch Barbra Streisand perform 'Happy Days Are Here Again' below: