Sharon Osbourne quit X Factor after telling Simon Cowell: It's Dannii or me.
Her ultimatum was revealed last night by fellow judge and best pal Louis Walsh - who is so shocked by the bust-up that he has delayed signing his own contract.
Louis denied that Sharon's departure from the ITV1 show was about a £1million rise she was allegedly demanding. Instead, he claims she quit over her feud with Dannii Minogue - insisting that Cowell chose between the two women.
Louis said: "It's not contracts or money, it's Dannii. They don't get on at all and she wasn't happy with the situation. Sharon has walked off, she's gone. Why didn't they give Dannii the boot instead?"
With just four days to go until the first audition in London on Thursday only Simon and Dannii are confirmed as judges.
Louis said: "I haven't signed yet but I am negotiating. It's a difficult situation. Sharon is a great friend, I talk to her everyday. She is devastated and so am I.
Advertisement - article continues below »
"I have absolutely no relationship at all with Dannii. I have no idea how she is feeling about all of this because I simply do not talk to her.
"I am going to miss Sharon greatly. The show won't be the same. Sharon is very very upset about all this. She loves the show and everything about it."
Girls Aloud Cheryl Cole is now top of Cowell's list to replace Sharon. He offered her a job last year and is convinced she is perfect for the job.
A source said: "Simon thinks Cheryl is sharp, funny, down to earth - with a cheeky turn of phrase.
"She knows all about this type of show because she won a place in Girls Aloud through the original Pop Stars: The Rivals show.
"And, of course, it helps that she is absolutely stunning."
