Irish president Michael D Higgins declined an invitation to the service, set to be attended by the Queen, because he believed it was not politically neutral and he had concerns about the title of the event.
Asked about news Mr Coveney would attend, Ms O’Neill said: “I think it’s the wrong call.
“It’s a matter for the Irish Government to make its own decisions. But I think that it is wrong for the Irish Government to attend the event.
“I think that we all know the sensitivities around the decade of centenaries and that those things need to be handled sensitively.
“But when it comes to the issue of partition, it’s a catastrophe. It’s failing people.
“It’s actually very current, and it impacts people’s lives here today and has been detrimental to relationships on this island and across these islands. So I think it’s wrong.”