Palin says she'll allow Cohen to air the footage, but she has a challenge for Cohen and Showtime.
Palin explains that she was asked to give an interview concerning military veterans that would be used as part of a documentary.
Palin, who was running mate to Republican presidential nominee John McCain in 2008, said she had been asked to travel across the United States with one of her daughters to speak to a disabled veteran for a "legit historical documentary". Additionally, she urged Cohen, CBS and Showtime to donate the proceeds from their program "to a charitable group that actually respects and supports American Vets". Now, she says, she realizes that veteran was really Cohen, "heavily disguised" with a "fake wheelchair and all".
A representative for Cohen, as well as CBS, did not immediately respond to Fox News' request for comment.
Palin said she agreed to the Cohen interview for a "legit opportunity" to honor veterans.
Cohen first found fame in Britain in 2000 with "Da Ali G Show" that saw his wannabe rapper character interview unsuspecting public figures.
"Sacha Baron Cohen at it again!" This time for CBS/SHOWTIME. "Both Republicans and Democrats are getting caught up in the madness", Drudge tweeted.
Who is America? will premiere on Showtime in the USA on Sunday and the network has promised it will show the comedian and actor "as you've never seen him before".
The politician stamped her statement with a scathing sentence: "By the way, my daughter thinks you're a piece of ****, Sacha".
It wasn't until this week that the news broke that Cohen's new show was premiering, prompting Palin to realize that she had been "duped" by the comedian. But in Monday's announcement of the series, network president David Nevins called Cohen "the premier provocateur of our time, but not for the sake of "gotcha" moments".