The singer, who was eliminated at the Boot Camp stage of last year's competition, insisted that she is not attracted to the Brazilian.
She told Now: "When I arrived at rehearsals Wagner ran up to me and gave me a cuddle, going, 'Chloe! Chloe!' so that's where they got that photo of us. He's very touchy-feely. But I don't fancy him - he's like a hairy beast!"
The 19-year-old also revealed that she is now engaged to talent agency owner Dymond Allen.
She recalled: "It was a few days before Christmas. First he got me a shout-out on the radio, which was so romantic. Then we went to an Italian restaurant near his home in London where he asked me to marry him.
"He got me a nice diamond ring and everyone in the restaurant was looking at us. We went to his mum's house straight after but it was so embarrassing because she'd seen the papers and she said to him, 'Isn't that the girl off The X Factor who's shagging Wagner?'"