Cowell decided that the relationship had run its course during a holiday in Barbados over the Christmas break. However, the X Factor and American Idol judge is apparently planning to give Seymour £1 million to get out of his life.
In a heart-to-heart talk, he allegedly told her, "When we started going out it was fun - but it's not any more. It's not fun for you and it's not fun for me. So what's the point?"
Simon's final gift to Terri is designed to set her up with her own flat, once she moves out of his £5 million home in London.
A friend told the Sunday Mirror, "Simon may want out but he is a decent guy and wants to take care of Terri. Each time he has tried to end it before, Terri has become very emotional begging him not to end it.
"She has tearfully said, 'I come from nothing, I can't go back.' After all, she has been a huge part of his life as he became a worldwide star - and she deserves to benefit even after they split up.
"The more she pesters him with emotional calls, the more irritated he becomes. He is fond of her but wants out now."