The UK's Daily Mail reported that Madonna made the change because she was upset with her daughter's recent rebellious behavior.
"There are no plans for Lourdes to be on stage and she will not be dancing or performing. She will be working in wardrobe," the unnamed source said.
Lourdes, who was following in the footsteps of father Carlos Leon, a dancer and personal trainer, was planning to join her mother onstage as a backup dancer after helping her select the backup dancers for the world tour, due to kick off this month.
Lourdes was recently caught smoking a cigarette, gaining unwanted attention and upsetting her mother, which was the apparent cause of the demotion.
Video: Why Madonna needs to be tougher on Lourdes.
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