Newly-engaged Iggy Azalea is facing a new controversy after a number of lesbian, gay, bisexual and transgender (LGBT) campaign groups pulled out of plans to march in the Pittsburgh Pride parade over objections to the rapper's headlining set.

The Fancy hitmaker is due to perform for fans at the Pennsylvania parade on 13 June (15), but not everyone is happy with the booking and some equal rights activists are protesting her appearance by canceling theirs.

The demonstrators claim Azalea isn't the right choice for a Pride event because she has previously been accused of making questionable comments on social media, which some have interpreted as homophobic and racist.

Vanessa Davis, from the Pittsburgh branch of the youth-advocacy group Gay, Lesbian & Straight Education Network, tells the Pittsburgh Post-Gazette, "Our board voted last week to not march in the Pittsburgh Pride parade, due to the insensitive choice of Iggy Azalea as headliner."

Meanwhile, others have taken aim at officials at Pittsburgh Pride sponsor The Delta Foundation for failing to put more important issues at the front and center of the parade.

Michael David Battle, founding director of the advocacy group Garden of Peace Project, says, "This isn't just about Iggy. It's about global issues."

Another local activist, Joy KMT, adds, "A Pride that highlights Iggy isn't going to be talking about police enforcement against black transwomen,"

However, Delta president Gary Van Horn insists the group is "committed to working with all organizations and members of the LGBT community and our allies to be sure that all feel welcome at Pittsburgh Pride

The backlash emerges days after Azalea decided to cancel her tour to give herself a break from her hectic schedule.