Chinese authorities do not provide reasons to Hollywood studios when they reject their movies, the source said.
While the Chinese censor board has not furnished a reason for the film's denial, reports suggest that comparison between President Jinping and the amicable cartoon character, who has become a symbol of political dissent, might be the reason behind it.
Since then, Winnie the Pooh has been blocked at various times on Chinese social media sites when those using the network mocked Xi.
A 2014 handshake between Xi and Japanese Prime Minister Shinzo Abe saw Abe compared to Eeyore the donkey.
Chinese authorities immediately censored the meme after it became viral on social media.
Cathleen Taff, head of distribution for Disney, confirmed the film has been denied a release the Associated Press reported The move locks the release out from the world's second largest film market. In 2015, the Financial Times reported, a photo of Xi waving at supporters from a parade auto next to an image of Pooh in a toy vehicle was named the most censored image of the year by Global Risk Insights.
China's foreign film quota allows a maximum of around 34 foreign films to be imported into the country per year.
With one particular image comparing President Xi to Winnie and President Obama to Tigger. Disney will open "Ant-Man and The Wasp" in China on August 24.
The new film tells the story of a now middle-aged Christopher Robin, whose mundane life takes a turn when he is unexpectedly reunited with the Hundred Acre Wood's Winnie-the-Pooh, Tigger, Piglet and other animals from his childhood.
Ever since, the memes have taken a life of their own so much that the Chinese authorities have been banning the images of the Disney character on social media since previous year.