Advice on birthday party & friend fallout

My daughter is turning 11 this month. We started to plan a birthday party for her. She’s in a very small after school activity group - they’re all friends; and I reached out to the parents to get a feel for schedules, since it’s the holidays, with the intention of inviting all the kids. I haven’t set a date yet or formally invited the kids.

However, one of the kids is starting to really upset my daughter, and recently it’s come to a head. She’s a troubled young girl and is constantly yelling, interrupting, hitting and squeezing, and generally suffocating my daughter. She is extremely sensitive and will react loudly if my daughter either doesn’t reply to her right away or replies in a tone she deems not excited enough. She will physically jump on her back, get inappropriately close to her face, and hug her until it hurts my daughter. They used to be very close, but my daughter is now so uncomfortable around her, she doesn’t want her at her birthday party. But she also doesn’t want to hurt her feelings. I completely understand and feel the same way.

I don’t want this particular girl at the party anymore now that my daughter has expressed such explicit discomfort around her. I want my daughter’s birthday party to be about her and be enjoyable, and I want to be kind and respectful to this friend and her mother.

What do ppl think is a good approach? Really need some advice!