The sources said that on Tuesday and Wednesday, the White House approached the Israeli prime minister's office and suggested that Herzog will be Israel's representative, sit on stage with the other leaders and sign the Board of Peace charter.
Netanyahu refused the request and effectively vetoed Herzog's participation, the sources said.
Some of the calls were "tense and difficult," the sources said.
On Wednesday evening, the White House still hoped a solution would be found that would allow Herzog to attend. Israel was one of 21 countries listed as participants in a list distributed by the White House on Wednesday night.
The efforts to solve the issue continued until several hours before the ceremony on Thursday, but Netanyahu maintained his refusal and argued that Trump sent the invitation to him, and not to Herzog.
One of the source said the episode created tensions between the prime minister's office and the president's office, as well as between the prime minister's office and the White House.