The 27-year-old has been at the centre of on/off reports ever since she was reportedly sacked from her new judging role on the US series after just four days.
It was recently claimed that Cole would be returning to the US show but it now appears that is not the case.
A source in the industry has told The Hollywood Reporter that after a number of talks Cole will be given the $1.5 million that she was owed under her contract but will not be making a return to the show.
It's claimed her lack of chemistry with fellow judge Paula Abdul was a key factor in her leaving the show.
A source said: 'There was no spark. It was nobody's fault. It just didn't work.'
The source added that Simon Cowell also believed a change was needed.
It was also thought that Cole would return to the UK version of the show but when news of her departure from the US show leaked her people stopped talks with the bosses at Fremantle.
A rep for the star told The Hollywood Reporter: 'Both parties are planning on abiding by the contract that was agreed to.'