"He said it's an insult that she would even want to engage with the crooks that are trying to bring him down," the source claimed.
"The President told his daughter that her presence at the inauguration will cost her thousands of supporters and would be the worst decision she could ever make.
"She said she has to protect her own political aspirations and isn't about to muck it all up by attending her dad's 2024 campaign kick-off which is set for the same day. She's leaving that for her dad and Don Jr."
Ivanka is yet to confirm her attendance and there are conflicting reports whether she is actually invited to attend.
Others have questioned in what capacity would she attend.
It comes after Trump announced he would not attend Biden's inauguration, breaking a long precedent that goes all the way back to 1869.
The President revealed his decision on Twitter last week.
The peaceful handover of power from president to president, in person, is considered an important American tradition, even – or perhaps especially – when the two leaders represent different parties.
Barack Obama showed up for Donald Trump's inauguration. George W Bush showed up for Obama's. Bill Clinton showed up for Bush's. And so on.
Only three outgoing presidents in US history have not attended their successor's inauguration. They were John Adams in 1801, his son John Quincy Adams in 1829, and Andrew Johnson in 1869.
In a video message posted on his Twitter account the day before, Trump finally acknowledged he would be leaving the White House to make way for Biden.
Last week, Ivanka faced intense backlash after labelling violent protesters "patriots" in a hastily deleted tweet.
The First Daughter's tweet was posted in response to the chaos that unfolded in Washington DC where pro-Trump supporters stormed the Capitol building in a bid to overthrow the results of the November 3 election.