Letitia James had asked the Metropolitan Transportation Authority to place a plaque at Brooklyn's Hoyt-Schermerhorn station - or have the late singer's name added to the station's name.
MTA officials rejected the request because plaques are prohibited in stations. Now James says she plans to ask for a station art contest honoring Jackson.
The MTA said Tuesday it only considers art for stations when they are up for rehabilitation, and that station won't be rehabbed for at least five years.
Jackson, who died June 25, shot the Martin Scorsese-directed video for "Bad" at the station in 1987.