According to Chris Haynes of Yahoo Sports, Lillard said he withdrew "for rest purposes."
Lillard was linked to the competition back in February, though official participants have yet to be revealed. He is shooting 38 percent from deep this season. This would have been his third time in the contest.
One star who will take a shot at the contest is Golden State Warriors guard Stephen Curry, who earned his seventh All-Star selection this year, per Haynes.
While Lillard won't be participating in extracurricular affairs Sunday, his teammate, Anfernee Simons, has committed to the Slam Dunk Contest, via Haynes. A pair of rookies are also locked in for that event: New York Knicks forward Obi Toppin and Indiana Pacers guard Cassius Stanley.
Anthony Edwards could have rounded out a worthy group of rookies, but he declined the invitation, as did New Orleans Pelicans star Zion Williamson, Boston Celtics star Jaylen Brown and Charlotte Hornets forward Miles Bridges, Haynes reported.
It's no surprise that high-profile stars turned down the invitation to participate in the events besides the All-Star Game, since so many have also been outspoken against the idea of an All-Star Weekend in the first place amid the shortened season and the COVID-19 pandemic.