The latest project from director Sanjay Leela Bhansali is an Indian update of Shakespeare's Romeo and Juliet.
A source told The Times of India: "The bone of contention between Bebo [Kareena] and Bhansali wasn't the money, as is being speculated in the media. It is reportedly the pregnancy clause that Bebo refused to sign."
It was initially suggested that the filmmaker was concerned audiences would not find Kapoor convincing as a young woman because of her plans to marry boyfriend Saif Ali Khan in October.
The actress replaced Aishwarya Rai-Bachchan in Madhur Bhandarkar'sHeroine after Rai-Bachchan revealed she was pregnant.
Bhandarkar accused Rai-Bachchan of hiding her pregnancy from the film's producers.
Watch the video for 'Main Heroine Hoon' from Heroine: