The British royal is said to have originally been part of the skit involving the monarch and James Bond, played by Daniel Craig.
William was going to be at the controls of the helicopter in which his grandmother and Bond jumped out of with parachutes in the sketch, reports The Sun.
However, insiders have claimed that aides axed his involvement, as they felt he would take attention away from The Queen.
A BBC source said that William would have been seen turning towards the camera and smiling while watching the monarch jump into the stadium.
London 2012 Olympics opening ceremony writer Frank Cottrell Boyce said landing the Queen for the ceremony was "easy" compared to other challenges.
Dame Helen Mirren was said to be a backup actor if the Queen was not able to take part.
Watch the scene below: