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Dannii Minogue snubs Cowell's £1million offer to return to The X Factor... after demanding a 'ridiculous' £5MILLION deal

Published: 17:24 EST, 17 May 2012 | Updated: 10:09 EST, 18 May 2012

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Dannii Minogue has snubbed a £1 million offer to return to the X Factor after days of frantic negotiations.

The petite popstar, 40, had been offered her spot to return to the ITV talent hit.

However, tonight, the tense talks ended after X Factor chiefs offered Miss Minogue £1 million to make her comeback after the departure of Kelly Rowland – and she refused the offer.

Last night, sources at Simon Cowell's company Syco claimed Miss Minogue's management company had demanded £5 million, which sources close to the star laughed off as 'ridiculous'.

Point of no return: Danni Minogue has snubbed a £1million deal to return to X Factor seen here in 2010 with Simon Cowell after the show won a NTA award

The move has left X Factor bosses reeling as auditions start on Wednesday in Liverpool, and it is thought the show will be forced to start filming with just three judges.

A source close to Miss Minogue said she was still 'hurt' after X Factor supremo Cowell confirmed they had enjoyed a secret affair, adding; 'Obviously, that had a huge impact on Dannii's decision on whether to return to the show.'

An X Factor source told the Mail: ‘We made it no secret that we wanted Dannii to come back and we thought we could make a deal.

‘She asked for £5 million, which was silly money and clearly a negotiating tactic, a silly one at that.

Doting mother: Dannii is said to have not only wanted $5million for the job but she also wants to spend time with her son Ethan after splitting with his father Kris Smith earlier this year

‘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.’

But this was vehemently denied by Miss Minogue, as a friend added: 'A million pounds is a huge deal.

'There was never any bid made for £5 million. If she wanted to do the show, she would have done it.'

Miss Minogue was approached to return to the show just weeks after it was revealed that she had enjoyed a secret affair with X Factor supremo Simon Cowell during her time on the show.

The good old days: Dannii with the former X Factor UK panel Louis Walsh, Cheryl Cole and Simon Cowell with Britney Spears in 2008

Those close to the star told how she was ‘devastated’ at what she considered to be a great betrayal by Cowell.

Cowell, 52, admitted the liaision in Tom Bower’s unauthorised biography, Sweet Revenge: The intimate life of Simon Cowell, saying: ‘I had a crush on her. It was Dannii’s hair, the sexy clothes, and the t**s,' the music mogul is quoted as saying.

'I was like a schoolboy. She was foxy. She was a real man’s girl. Very feminine. It was genuine love.'

Referring to his ex-girlfriend Terri, Cowell admitted that his relationship with Miss Minogue wasn't a serious one, adding: 'After Terri Seymour, I wasn’t ready for another relationship.'

One friend said that Miss Minogue was stunned by the sudden revelations, saying: ‘She was devastated, she had thought it was a secret, something in the past that she had kept quiet about for five years.’

It is thought that Miss Minogue was keen to stay in Australia, where she is caring for her young son Ethan, and also starring on Australia’s Got Talent.

She is still recovering from the split from her long-time boyfriend Kris Smith, the father of her son.

The couple announced their break-up last month after four years together and she admitted: ‘Fame and work have always had an impact on my family since I went into this business at seven years of age.... It’s all I know. How do I juggle everything now?

Some days with ease, some days with difficulty. I have found that over the years, whatever happens, you have to roll with it.’

And Miss Minogue said she did not want to disrupt Ethan’s routine, saying: ‘He has his little routine now. He has swimming lessons; he has things that are important to him. I don’t want to unsettle him to follow me around the globe.'

She added: ‘The guilt of going back to work floods you. I try to take it all in my stride, but when it affects my loved ones I feel an internal struggle with the love for my work.’

X Factor chiefs are now searching for a full-time judge to join Gary Barlow, Louis Walsh and Tulisa Contostavlos and as the Mail told, have signed up Katy Perry to be a guest judge.