The 24-year-old, who made it into Nicole Scherzinger's Boys finalists this weekend, was seen leaving Whisky Mist with reality show hopeful Chanelle McCleary.
The cast of Take Me Out were celebrating the return of the dating show when The X Factor contestants also arrived.
A source told The Sun: "Everyone was shocked to see the X Factor finalists out for the first time and got very excited.
"A lot of the girls from Take Me Out were at the club and when the X Factor lot came in, they pounced.
"But it was James that was all over this one girl. They were snogging each other's faces off. They were still at it when most clubbers had left."
Arthur recently slammed Digital Spy forum users, calling them "lowlifes" and "clowns" and suggesting they "should be locked up for some of the s**t they say".
He tweeted: "Rarely do I go on s**t like Digital Spy which is made for w**kers with no lives who wanna find out what's happening on Corrie next wk but when I do all I see is abuse! I reckon they should shut that s**t down!!"
Photo gallery - X Factor and Take Me Out stars at Whisky Mist nightclub:
Copyright: Rex Features Photofab/Rex Features