The actress was to appear in thriller Zilla Ghaziabad opposite Sanjay Dutt.
"Zarine has been sending out feelers that she wants to do item songs, as she needs the money to buy a house," a source told The Times of India.
"When good friend Manyata Dutt heard that Zarine was on the lookout, she spoke to hubby Sanjay Dutt and got her one in his next film Zilla Ghaziabad. Manyata spoke to Sanju's business manager Dharam Oberoi and got her a decent fee (30 lakh).
"When Zarine heard about Vivek, she got scared. She owes her career to Salman [Khan]. He turned her from a background dancer into a leading lady. She felt he wouldn't approve of her associating with Vivek in any capacity."
Salman Khan and Vivek Oberoi fell out nine years ago after the latter called a conference to end media speculation over their rivalry.
In January, it was reported that Khan had ignored Oberoi at the annual Screen awards.
Zarine Khan made her Bollywood debut in Veer after Salman spotted her among fans waiting at his film set.