The X Factor singer, who came fourth overall in the ITV reality show, has joined Jay-Z's Roc Nation, which currently houses artists such as Willow Smith and Lil' Kim.
"Even though Cher didn't do terrifically well in the X Factor finals, there's been a hell of a lot of interest in her," a source told The Sun. "All the labels are on the lookout for sassy, young female artists with bags of attitude, and Cher fits that bill perfectly."
Black Eyed Peas frontman will.i.am previously revealed that he wanted to take Lloyd "under his wing", but it now appears that he has lost out on her signature.
"Will.i.am's backing only intensified the battle to get her signature," the source added. "After weighing up the pros and cons, it was thought that the team at Roc Nation would be best placed to turn her dreams of stardom into a reality."
Jay-Z was first linked with a move for the 17-year-old in November after admitting that he was a fan of her X Factor performances.