The former EastEnders star's debut single 'Shimmy', charted at a poor number 85 in the UK singles chart last month.
The Sun claims that Mercury will now not release Kalidas's album, Constant Cravings.
An insider told the paper: "'Shimmy' got very little radio or TV airplay, which is vital for a first single. Bosses thought the album wouldn't do much better."
Her spokesman added: "There was a difference of opinion with Mercury about the direction she should go in. If Mercury is not the right label, there are others who are interested."
He went on to say that she planned to release her next single in November, on a different label.
Kalidas previously said that she would "never say never" to reprising her role as Amira Shah in the BBC soap.