Katie Waissel has been accused of double crossing Simon Cowell after reports emerged that she appears on an album released last Friday.
The wannabe singer, who survived another elimination last night, features on a duet released in America with singer- songwriter David Reed using her alter-ego Lola Fontaine.
Cowell''s laywers reportedly spent thousand of pounds extracting Katie from a US record deal so that she could compete on The X Factor.
It is unclear whether a duet breaks The X Factor rules but a spokesperson commented: "We were unaware of this until today."
There have also been allegations that Katie is thinking of leaving the UK and starting again as a jazz singer in America under the name Lola.
Katie beat Aiden Grimshaw in last night's 'deadlock' elimination after singing Save Me From Myself by Christina Aguilera.
