Felix Buxton previously declared that he is not fazed by the fact that the dance duo are not renewing their deal with XL, saying: "XL haven't offered us a new deal, but I didn't imagine they would. You don't need a record company now - they aren't so relevant."
However, the company has now released a statement dismissing the rumours. It reads: "Contrary to a small number of internet stories that have surfaced over the weekend, XL Recordings would like to clarify that Basement Jaxx have not been dropped by the label.
"XL Recordings will be releasing the band's new album Scars on September 21 along with their new single 'Feelings Gone' featuring Sam Sparro."