Radcliffe, 21, had committed to appear in the revival of 'How To Succeed in Business Without Really Trying' at the Hirschfeld Theatre, which started previews on February 26 and runs until at least November 6.
But Warner Bros. chiefs were furious that his Broadway deal meant he might not be available to promote 'Harry Potter and the Deathly Hallows: Part 2', to be launched with a lavish premiere at London's Trafalgar Square on July 7.
In tense negotiations, 'How To Succeed' producers refused to release Radcliffe for the days when Warner needed him -- forcing the studio to buy out the whole theatre for the nights he'd have to miss.
"Warner Bros. is furious that Radcliffe committed to Broadway when he should be promoting 'Harry Potter'," the New York Post quoted a source as saying.
"This is the final film, so it's a big deal. A grand world premiere is being planned as well as a US premiere and a press tour.
"They absolutely couldn't do it without their big star. But the theatre producers dug their heels in and said they wouldn't release Radcliffe unless Warner bought out the entire theatre for the nights they need him.
"Studio bosses are furious, but they have no choice but to pay up for five nights costing over 500,000 dollars," the source stated.
A Telecharge sales agent said that while tickets are being sold up to November 6, tickets for July 5 and 6 have "not been released", although they haven't yet been cancelled. Tickets for July 9 are currently on sale.
"Everything is fine, Dan is promoting the film and is happy to do so. With all productions there are scheduling issues but everything has all been worked out," Radcliffe's rep said.
"Warner Bros. is very supportive of Dan, and there is no issue," the rep added.
