He turned down a £2.5 million pay cheque that is seemingly the largest he has ever been offered for an official worldwide tournament.
Events in Saudi Arabia have become a controversial issue following the killing of Washington Post journalist Khashoggi, who died after a visit to the Saudi Embassy in Istanbul.
The figure paid to 42-year-old California native Woods to play in the European Tour's inaugural event in Saudi Arabia next year, would have been his largest overseas appearance paycheck ever, us reports, who broke the story.
Woods, the tournament host of the event he launched with his late father, Earl, in 1999 to benefit the Tiger Woods Foundation, will be joined by No. 1-ranked Justin Rose, No. 3 Dustin Johnson, No. 4 Justin Thomas, and No. 5 Bryson DeChambeau among the 16 players announced Thursday.
In October, tennis great Roger Federer revealed he rejected a $1 million invite to appear in an exhibition match in Jeddah, the Saudi Arabian capital, in December.
World Wrestling Entertainment (WWE) chose to go ahead with a Riyadh event last week, prompting some fans to accuse it of accepting "Saudi blood money".
Woods hasn't commented publicly on why he turned down the pay day, but he doesn't need the money, nor does he need the bad press.
According to Turkish officials, Khashoggi was killed, dismembered and had his remains dissolved in acid following an assassination order from high-ranking Saudi leaders, namely defacto leader Crown Prince Mohammad bin Salman.
Amid the outrage, a major investment conference in Saudi Arabia held in mid-October was boycotted by high profile politicians, corporate bigwigs and global media organisations.