The singer, 66, whose real name is Faegheh Atashin, was told on Tuesday she was not allowed to fly from the UK to the US, where she was due to perform.
Reports say she was advised by her lawyers not to attempt to fly to the United States.
Googoosh, who holds a US Green Card, which grants her permanent legal residency, was in London recording a studio album.
She is the latest high-profile Iranian to be caught up in the Trump “strong borders” executive order, that bars citizens of seven countries including Iran, from entering the US.
Trita Parsi from the National Iranian American Council confirmed Googoosh’s flight denial on Twitter.
Googoosh was also in London in 1979 recording an album when the revolution in Iran succeeded.
She was forced to give up singing for almost 20 years after the revolutionaries banned female performance, and was imprisoned for a month in 1980 by the Iranian government.
Googoosh maintained her fame as future generations kept her music alive by making bootleg copies and relying on US-based dissident channels to hear her old performances.
She resumed touring at the start of the century and has attracted a keen following outside her own country.
Googoosh who resumed her singing career in 2000 after a 20-year-break, has been giving live performances in various parts of the globe including the US, Canada and Gulf countries.
Iranian director Asghar Farhadi, whose film The Salesman is an Oscar nominee, has also refused to travel to the US while Trump’s Muslim ban is in place.
Actress Taraneh Alidoosti, who plays the lead in the film, has also refused to travel to the Oscars.
Iranians, with a community believed to number at least one million in the US, have been hit particularly hard by Trump’s Muslim ban.
Many fled to the US after the revolution but maintain close ties and contacts with friends and family back home.
Trump on Monday defended his decision and denied that many people were affected by the travel ban. His administration said the ban didn’t apply to green card holders.