Cardle was said to have been furious with Waissel for allegedly encouraging a piece in the News of the World stating that "something steamy" was going on between the pair. He reportedly maintained that he and Waissel were only watching a DVD together.
NotW showbiz editor Dan Wootton wrote on Twitter: "All these claims today that Katie Waissel sold me the story about her and Matt Cardle being caught in bed are SO ridiculous. She didn't!
"But, can I just stress, Matt and Katie DID snog and WERE caught in bed by a shocked production member."
Both Cardle and Waissel avoided being placed in the bottom three on Sunday's X Factor results show.