The hotel heiress was asked by producer Mark Burnett to play the 'victim' when Sacha's alter-ego Bruno, a gay Austrian fashion reporter, descended from the roof wearing wings, knee high boots and a jockstrap before wrapping his legs around her head, with his buttocks fully exposed.
Paris decided she didn't want to be involved so Eminem took her place.
However, sources claim the rapper didn't know how naked Sacha would be and Eminem was later seen storming out of the event at the Gibson Amphitheatre, in Universal City, California, in disgust.
An insider told Life and Style magazine: "Paris is quite happy she turned down the offer."
Meanwhile, Paris had to be separated from her boyfriend Doug Reinhardt's ex-girlfriend at the awards.
The blonde socialite was furious when she discovered Lauren Conrad, whose romance with Doug featured in reality TV show 'The Hills', was attending and organisers had to ensure the two girls didn't meet.
A source said: "Organisers went out of their way to make sure World War Three didn't break out on the night. Both camps made it clear the girls did not want to be anywhere near each other.
"Staff got around it by staggering their appearances on the red carpet by half an hour."
Last week, Paris slammed 'The Hills', branding it "fake".
She said: "The show is, like, so lame and fake. He doesn't even want to be a part of it.
"They make up relationships when they're not there, and he just thinks it's lame. I've never seen the show in my life. I have no idea what it's about. But he just thought it was cheesy."