Dannii Minogue has reportedly snubbed a £1 million deal to return to the UK X Factor.

The Australian singer had been in talks with bosses for the TV show this week, but the negotiations are believed to have ended after she turned down the offer. There was speculation that the star’s management team had demanded £5 million to secure Dannii’s return to the judging panel.

“We made it no secret that we wanted Dannii to come back and we thought we could make a deal,” a source told British newspaper The Daily Mail. “She asked for £5 million, which was silly money and clearly a negotiating tactic, a silly one at that.

“We were in talks until late on Wednesday night and went up to £1 million for the series. Everyone thought she would take it, but she didn’t.

“We then walked away – as our feeling was that we wouldn’t be held to ransom.”

However, sources close to Dannii, 40, have branded the money rumours “ridiculous”.

“A million pounds is a huge deal,” the insider said. “There was never any bid made for £5 million. If she wanted to do the show, she would have done it.”

It has been claimed the beauty was “hurt” by recent revelations about her secret affair with Simon Cowell when they both worked on the show. She was reportedly approached about coming back for the new season just weeks after the rumours surfaced.

This is believed to have impacted her choice not to reprise her role as a judge.

“It was so upsetting for her to be described as one of Simon’s ‘toys’ and for him to talk about their fling in such a humiliating way,” a source told British newspaper The Sun. “Huge sums have been put on the table and it’s not convinced her. It wasn’t about money. She could easily have got more than a million. They desperately wanted her.”

Dannii was tipped to re-join the show following the recent departure of Kelly Rowland.

Simon will not be a judge this year, but will remain executive producer.

Auditions are scheduled to begin next week and it is believed they will take place in front of three judges instead of the usual four. Take That star Gary Barlow and Louis Walsh have both confirmed they will be returning to the panel.